Industrial driving factors and industrial barriers
The driving factors of industry are mainly divided into two parts, the first part is the driving force of production factors, and the second part is the driving force of related supporting industries, in which production factors include advanced production factors and primary production factors, and related supporting industries are driven by the gathering of upstream and downstream of the industrial chain.
Trade barriers: Trade barriers are divided into restrictive factors and market barriers, which can be understood as a "visible" hand and an "invisible" hand, namely policy restrictions and market restrictions.
Policy restrictions, such as import and export restrictions, licenses, quotas, etc. , to achieve restrictions, such as economies of scale to reduce costs, the formation of industry barriers for new small-scale players, and such as the lack of brand technology, but only to become a processing enterprise, to obtain the lowest manufacturing profits.
If the threshold of the industry is high, it is difficult for competitors to enter the market, and the monopoly degree of the industry is correspondingly high, which is usually analyzed and measured by industry concentration, that is, CR5 (the market share of the top 5 enterprises in the industry).
However, the higher the degree of monopoly, the more opportunities for enterprises to obtain excess profits. However, the degree of monopoly in the industry is not only determined by industry barriers, but also the difference of consumer demand will have an important impact on the degree of monopoly. For example, the monopoly of the mobile phone industry is relatively high, but it is difficult for the catering industry to have oligopoly because the consumer preferences of catering are very different.