High sunk costs limit competition (Lighting Industry)

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High sunk costs make it difficult for a competitor to enter a new market, because they have to commit money up front with no guarantee of returns in the end. High sunk costs positively affect Lighting Industry. … This statements will have a short-term positive impact on this entity, which adds to its value. "High sunk costs limit competition (Lighting Industry)" will have a long-term negative impact on this entity, which subtracts from the entity's value. "High sunk costs limit competition (Lighting Industry)" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.

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