The Crocs Cautionary Tale And Instant Competition

Law360, New York (September 12, 2008, 12:00 AM EDT) -- For startup companies, barriers to entry used to be physical — factories, distribution, mass-marketing campaigns, even skilled employees.

In the modern world of business, all of these resources can now be subcontracted and a startup no longer needs to pull together large amounts of capital for physical assets. Prototyping and manufacturing can by outsourced to any number of factories overseas.

In many cases, FedEx, UPS, DHL and the like can take the place of traditional shipping departments. The Internet can be used as the primary marketing...
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