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What is meant by “PayPal is the low-cost barrier of entry”? What are the risks that...

What is meant by “PayPal is the low-cost barrier of entry”? What are the risks that will be faced by a business organization from competitors if a business has low barrier of entry?

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Low cost berrier to entry means there are less cost of government licences, less paper work to get licence, eco - friendly process. Low cost barrier to enter means that new competitors of Paypal can enter in the market very easily and lower the market share of Paypal which will reduce revenue of it. High competition will attract talented employees which means Paypal have to pay higher salaries to retain their employees with them and they have to maintain good working environment, flexible hours and other perks / benefits.

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