Potential participants (Barriers to entry / exit) Threat of new entrants (low) barriers to potential entrants in the hardware industry are high. For new members of the initial investment required is very high. This is compounded by the high cost of supplies and lack of access to distribution channels industry act as a deterrent to entry into the business. The company hopes to play an important role in the industry must invest a huge amount of capital for startups, and then be able to invest considerable sums on research to new and unique products are ...