Barriers to the entry into the fruit producing industry in the Czech Republic

D. Kudová and H. Chládková
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D. Kudová: Department of Management, Faculty of Business and Economics, Mendel University of Agriculture and Forestry, Brno, Czech Republic
H. Chládková: Department of Management, Faculty of Business and Economics, Mendel University of Agriculture and Forestry, Brno, Czech Republic

Agricultural Economics, 2008, vol. 54, issue 9, 413-418

Abstract: The contribution is focused on the analysis of barriers to the entry into fruit production. The branch is identified as a fruit growers branch and the threat to new entries in the branch will concern especially the establishment of a new firm or the expansion of an existing firm's plant production by some fruit species production. The methodology is based on the Porter model of competitive forces in the industry. In fruit production, there have been analysed the following entry barriers: economies of scale, differentiations, capital intensity, transfer, access to distribution channels, cost disadvantage independent of scale, government policy, anticipated retaliatory measures from existing firms. The analysis proves that the barriers to enter the fruit production are rather high nowadays, which should discourage the potential new firms from entering this branch.

Keywords: branch; barrier to entry; fruit production; economies of scale; capital intensity; access to distribution channels; government policy; anticipated retaliatory measures from existing firms (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:caa:jnlage:v:54:y:2008:i:9:id:2700-agricecon

DOI: 10.17221/2700-AGRICECON

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