A new brewery that wants to market beer nationally must deal with the fact that Anheuser-Busch spends over $225 million a year on marketing.This statement is an example of _____ for the new national brewery.

Question

Quizplus · Accepted Answer

The statement about the large marketing budget of Anheuser-Busch is an example of a barrier to entry, which refers to any factor that makes it difficult for a new company to enter a market and compete with established firms. In this case, the significant marketing spending of the dominant player in the market creates a challenge for the new brewery to establish brand recognition and consumer loyalty.

A New Brewery That Wants to Market Beer Nationally Must