News Formal

On barriers to entry | Business

  • 📰 finweek
  • ⏱ Reading Time:
  • 58 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 63%

Sverige Nyheter Nyheter

Sverige Senaste nytt,Sverige Rubriker

There are various ways in which a company or sector can achieve competitive dominance, writes Simon Brown.

Founder and director of financial and investment education website JustOneLap.com, Simon Brown.

I was hosting a webcast presented by Keith McLachlan of Integral Asset Management on an introduction to fundamentals and he reminded me of something I have written about before – barriers to entry for competitors. But he added some extra thoughts that are well worth repeating here. Firstly, those traditional barriers to entry are often legal. This is when a license is required which the state doesn’t hand out all that often. Casinos are examples. We could have dozens of them in any city, but to make them profitable and hence attractive for operators, the state limits the number of casinos and new competition in the same geography is unlikely.

Banks are also an example as they require not only a large amount of start-up capital , but also a rigorous approval process by the South African Reserve Bank.This protects customers, but also protects the existing banks. Now sure, we have seen several new entrants over the last few years, but it is not a mad gold rush situation where a new bank opens every other month.Get 14 days free to read all our investigative and in-depth journalism. Thereafter you will be billed R75 per month.

Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 19. in SE
 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Simon’s weekly wrap: Business adapting to the times[LISTEN] This week MoneywebNOW looked at Naspers and Prosus results, retail trends post-pandemic and amid an energy crisis, green bonds for home solar, Nike results and balancing ESG elements, with SimonPB MoneywebNOW Naspers Prosus Naspers SimonPB ɪ'ᴍ ɴᴏ ᴇxᴘᴇʀᴛ ɪɴ ᴛʀᴀᴅɪɴɢ ʙᴜᴛ ɪ ʜᴀᴅ ɢᴏᴏᴅ ɢᴜɪᴅᴀɴᴄᴇ ᴡɪᴛʜ mamats38 ᴀɴᴅ ʜer ᴛᴇᴀᴍ, ɪᴛ'ꜱ ʙᴇʏᴏɴᴅ ᴇʏᴇ ᴏᴘᴇɴɪɴɢ, ᴡɪᴛʜ ᴛʜᴇꜱᴇ ᴛᴇᴀᴄʜɪɴɢꜱ ᴀɴᴅ ᴛʀᴀᴅɪɴɢ ꜱᴋɪʟʟ, I'ᴠᴇ ʜᴀᴅ ɴᴏᴛʜɪɴɢ ʙᴜᴛ ᴄᴏɴᴛɪɴᴜᴇᴅ ꜱᴜᴄᴄᴇꜱꜱ.
Källa: Moneyweb - 🏆 5. / 77 Läs mer »

Helping business flow – Simon Ward explains how Floatpays helps South Africans overcome financial challengesSimon Ward meets with Michael Avery to discuss Floatpays and the financial services it offers to South Africans.
Källa: BusinessTechSA - 🏆 24. / 61 Läs mer »

Helping business flow – Dr Simon Kekana discusses the challenges facing South African educationDr Simon Kekana has a deep understanding of the challenges facing the South African education sector and provides valuable insights in this Helping business flow episode with Michael Avery.
Källa: BusinessTechSA - 🏆 24. / 61 Läs mer »