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Profitability
Economies of Scale
Expensive Facilities
Internal Regulations
No Key Intellectual Property
The widget industry is not remarkably profitable. This will deter new entrants.
The low margins on widget production are primarily due to cost of raw materials. Profitability comes through mass production. This impedes new entrants.
Modern widget production requires significant land, structures, and machinery. These items usually require extensive capital investment, raising barriers to entry.
Since the Great Widget Collapse of 1937, the Widget Manufacture's Consortium instituted stricter marketing rules to protect consumers and burden new entrants.
While some widget production processes are still patented, many alternatives exist and are widely available for a nominal cost. This benefits new entrants.
Factors Impacting Entry into the Widget Industry
Welcome to the 83rd annual WMC convention.
by Nathanael Okhuysen