> What about industries where it is difficult or impossible to crack without a large investment? In that case, new competitors might arise from established comp

> What about industries where it is difficult or impossible to crack without a large investment? In that case, new competitors might arise from established companies expanding vertically, but very few can come from brand new companies. Established companies are always free to create a new company which is structured in a way that it is not vertically integrated. And so what if a large investment is required? If established companies cannot integrate vertically, the field is open for investments by people who cannot subsidize their prices to beat the competition.