AbstractSeveral authors have advanced the premise that the barriers to entry into an industry are lower for a firm if its current activities are similar to those of firms in the industry it wishes to enter. If true, the incidence of entry should be positively correlated with the degree of relatedness,ceteris paribus. In this study measures of relatedness are employed to explain entry of dairies into the chilled orange juice industry. The results suggest that relatedness, particularly with respect to packaging and processing, is an important factor in entry decisions.