It is going to be much more difficult for a competitor to enter a business which requires hundreds of millions of dollars in startup capital than it is for a retailer, which can be opened for
a minuscule fraction of the cost (e.g., there are very few entities in the world that could start an airplane manufacturer to go head - to - head with Airbus or Boeing, but you and your friends could probably gather the capital necessary to lease a space at the local mall and start your own business).