Michael Porter's Five Forces are useful in determining market competitiveness. In this article, I study one of the five forces, namely the threats of new entrants in the industry. A “new entrant” can be defined as a new or existing business that has never been competitive in the industry in its geographic market. A number of common barriers to entry include government policy, economies of scale, switching costs, cost advantages, large capital expenditures, independent cost advantages, scale, artificial deterrence, strong competitor retaliation, limited access to distribution, differences between proprietary products and established brand preferences. .Understanding the entry barriers specific to the biotechnology industry requires first defining the industry. Our group decided to define the biotechnology industry as “companies in this industry primarily use living organisms or molecular and cellular techniques to provide chemicals, foods, and services that meet human needs” (IBIS World Report, 2013). For the purposes of this project, we chose to exclude companies manufacturing general biological equipment, developing small molecule pharmaceuticals, and conducting contract research. Additionally, we have chosen to focus on the American market. The biotechnology sector is dominated by relatively few well-established companies, such as Amigen and Biogen Idec. These dominant companies typically have large capital reserves, large research and development (R&D) departments, access to specialized equipment and materials, experts in the field, and typically hold multiple patents. These companies also typically have well-established manufacturing plants and distribution networks. All of these characteristics can pose significant obstacles in the middle of paper. The industry also faces significant "exit barriers" because the technologies produced are highly specialized and have low utility in others. areas. Thus, even when some innovations have limited market value and generate low profits, they often remain on the market. Because companies often become highly specialized, they can create a niche for themselves that other competitors have difficulty entering, but may also have difficulty exiting. Barriers to entry in the biotechnology industry protect large industries while making it difficult for smaller companies. to enter. Whether these barriers hinder or promote innovation is debatable. Although a small company may find the cost of researching and developing innovative technologies insurmountable, these companies can license their technology or partner with a larger, more established company..