They prefer companies with unique ideas or niches that can be patented, or businesses with high barriers of entry.
Further, the complexity of wafermaking and a constrained supply of silicon provide high barriers of entry to potential competitors.
Daily deals once excited Wall Street because of their high margins, but low barriers to entry invited a raft of competition from related businesses, which forced a re-rating of Groupon and the industry as a whole.
The financial services industry, long protected by complex regulations, high barriers to entry and economies of scale, is ripe for disruption.
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The regulators explained that their progress has been hampered by lack of resources, the large agencies tried to impress committee members by describing their hefty expenditures on heightened compliance and stronger controls, and the smaller agencies complained about high costs of regulations, barriers to entry, and took as many shots at the Big Three as they could fit in.
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The acceleration of vaccine development through cloning has broken down the sector's traditionally high barriers to entry, which has attracted the attention of pharmaceutical companies.
We think that this concern is overblown because of the large size and fragmentation of the commercial reverse supply chain segment, high barriers to entry for successful penetration into the market, and the incompatibility of an online surplus liquidation business with the aforementioned potential competitors.
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Barriers to entry are very high, with a handful of participants dominating the market.
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With such high barriers to entry, it is unsurprising that most purveyors of elite education are old, and many are charities.
Mr Mitarai was lucky enough to inherit a firm with this kind of leadership, in a sector with high barriers to entry.
When the means of production were expensive and the barriers to entry high, having a dad who owned a newspaper chain or a billboard company was a pretty good way to get a running start in the media business.
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One reason, argues Ian Maxwell of Schroder Salomon Smith Barney, an investment bank, is that only the biggest firms can afford to get over the high barriers to entry in the high-return, low-risk niches of the mining business: iron ore, alumina, diamonds and industrial minerals.
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