barrier to exit



  • noun a factor that makes it impossible or unprofitable for a company to leave a market where it is currently doing business


  • noun something which make it difficult for a firm to leave a market, such as its inability to get a good price for assets which it wants to sell Barriers to exit may be created, for example, when a company has invested in specialist equipment which is only suited to manufacturing one product, when the costs of retraining its workforce would be very high, or when withdrawing one product would have a bad effect on the sales of other products in the range

Health Economics

  • (written as Barrier to Exit)
    Limits to an organization's ability to cease activity, usually imposed by government or regulatory agencies or arising from a local politically hot situation. For example, it is notoriously difficult to close hospitals for political reasons (central or local). On the other hand, it is much less difficult to replace (senior) management teams, which is a common recourse in health care when the institution must survive.