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29-ENTRY-EXIT BARRIERS - the suppliers and distributors...

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ENTRY/EXIT BARRIERS The threat of potential new entrants into the Security equipment Industry is high. This industry widen on the manufacturing and selling of Video surveillance, door phone and/or Alarm system. For a new company, the barriers of entry are low and easy to entry. Korean companies cannot get advantage anymore from Taiwanese and Chinese companies especially in low-end market. This is especially obvious for most Korean Video Surveillance manufacturers (Mandy Chen, 2006) . It is also easier to create relationships with
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Unformatted text preview: the suppliers and distributors through internet. If a new company is enter into the Security Industry with lower cost (Chinese manufactures), they will not have to compete with the strong brand names and images already associated with the industry. Therefore, the threat of potential new entrants is high. Due to low capital for investment in the manufacturing process, OEM parts, and relationships with suppliers, and distributors to enter the Security equipment Industry, exit barriers are low as well ....
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