Examination of the market structure: this involves determination of market share of each supplier extent of stability of market shares overtime and rate of entry of new firms into the market and their degree of success. In particular, it is essential to look for the presence of any barriers to entry. The first type of barriers are natural barriers which arise when there are large economies of scale problems for new entrants to access technology, raw materials or distribution channels or relative smallness of the market in relation to the minimum size of investment.
