<Li> Customer loyalty - Large incumbent firms may have existing customers loyal to established products . The presence of established strong brands within a market can be a barrier to entry in this case . </Li> <Li> Control of resources - If a single firm has control of a resource essential for a certain industry, then other firms are unable to compete in the industry . </Li> <Li> Inelastic demand - One strategy to penetrate a market is to sell at a lower price than the incumbents . This is ineffective with price - insensitive consumers . </Li> <Li> Predatory pricing - The practice of a dominant firm selling at a loss to make competition more difficult for new firms that cannot suffer such losses, as a large dominant firm with large lines of credit or cash reserves can . It is illegal in most places; however, it is difficult to prove . See antitrust . In the context of international trade, such practices are often called dumping . </Li>

Which of the following is not likely to act as a potential barrier to entry