Barriers to the entry into the fruit producing industry in the Czech Republic
Kudova, D.,Mendelova Zemedelska a Lesnicka Univ., Brno (Czech Republic). Ustav Managementu | Chladkova, H.,Mendelova Zemedelska a Lesnicka Univ., Brno (Czech Republic). Ustav Managementu
This contribution is focused on the analysis of barriers to the entry into fruit production in the Czech Republic. The branch is identified as a fruit growers branch and the threat to new entries in this branch will concern especially the establishment of a new firm or the expansion of an existing firm's plant production. The methodology is based on the Porter model of competitive forces in the industry. The following entry barriers were analysed: economies of scale, differentiations, capital intensity, transfer, access to distribution channels, cost disadvantage independent of scale, government policy, and anticipated retaliatory measures from existing firms. The analysis proves that the barriers are rather high nowadays, which should discourage the potential new firms from entering this branch.
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