Cafe

• Threat of New Entry


  • Time and cost of entry
  • Specialist knowledge
  • Economies of scale
  • Cost advantages
  • Technology protection
• Barriers to entry


  Factors that make it difficult for new firms to enter a market
• Porters 5 Forces for Threat of New Entry

  • Supplier Power
  • Competitive Rivalry
  • Buyer Power
  • Threat of Substitution
• Competitive Rivalry


  • Number of competitors
  • Quality differences
  • Other differences
  • Switching costs
  • Customer loyalty
• Supplier Power


  • Number of suppliers
  • Size of suppliers
  • Uniqueness of service
  • Your ability to substitute
  • Cost of changing
• Threat of Substitution


  • Substitute performance
  • Cost of change
• Buyer Power


  • Number of customers
  • Size of each order
  • Differences between competitors
  • Price sensitivity
  • Ability to substitute
  • Cost of changing