An example of this could be the phone, or cable companies. There are very few companies that are able to compete within this industry because of the high capital requirements to start off. An enormous amount of time and money would have to be spent on installing lines throughout the country to supply you customers with the services they want. .

             EMC is in a situation where it has created several barriers to entry. Capital requirements are one of the barriers that EMC has in its favor. In 1979 EMC started its business in data storage which it is now the leading company in its industry. It has offices all over the globe and is the only company in the world to be specifically focused on rapidly delivering intelligent enterprise storage and retrieval solutions. There are very few companies that can compete with EMC because of its name association and large international operation. New entrance into this industry would have to invest large amounts of time and money into research and development. EMC already has the technology and is constantly updating with more advanced services. .

             Another barrier to entry is product differentiation. EMC is specialized in enterprise storage, which is much different than conventional storage. While conventional storage has been used to back up memory in case of a disaster or, to log companies transactions, EMC started a niche which it has made into a new industry. Enterprise storage has six specific parts that set it aside from conventional storage. They are as follows enterprise connectivity, information centricity, cascadability, information management, information sharing, and information protection. It can be clearly seen that this industry is constantly changing, and new products are coming out every day. If you are not the leader in this new technology then you will not survive. EMC has without a doubt developed barriers to entry.

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