Barriers to entry refer to the conditions or obstacles that make it difficult for new competitors to enter a particular industry or market. These barriers can be financial, regulatory, technological, or cultural, and they protect established players from new competition.
A concentration ratio measures the proportion of total industry sales controlled by the largest firms within the industry, typically the top four or eight firms.
An input-output table is a document that details how the output of one industry is utilized by other industries within an economy. This table serves as a model for analyzing local economic operations and predicting aggregate economic activity based on future economic assumptions. Input-output tables offer a static snapshot of the economy at a given point in time.
Labor intensive refers to industries or companies where labor costs are a more significant component of total costs compared to capital expenditures.
Porter's Five Forces is a powerful framework for analyzing the competitive forces that shape every industry, and it helps determine an industry's weaknesses and strengths. Developed by Michael E. Porter, it provides insights into the five forces that drive competition within an industry and influence its overall profitability.
