This can discourage new entrant .
They either have to start trading at a smaller volume of unit and accept a price disadvantage over larger companies or risk coming into the market on a large scale in an attempt to displace the existing market leader .
This can discourage new entrant because they either have to start trading at a smaller volume of unit and accept a price disadvantage over larger companies or risk coming into the market on a large scale in an attempt to displace the existing market leader .