Porters five forces analysis

Porters five forces analysis used to investigate every possible aspects in

industry from the force of contention to the attractiveness of industry and to
distinguish the most well-known treats confronted in industry.
The first would be risk of new entrance, which is high in market as there are not
very many barriers to enter, sustain and made it as a popular good industry to
venture in. Second is Buyer Power. Buyers influence the industry by constraining
down the price, expecting higher quality or more service as well, and playing
competitor against each other (Dess et al 2004, p.53). Their main concern is
income as it plays critical part in selecting product, thus making buyer power in
industry high. Third is treat of substitutes. Different substitutes in the business,
for example, regular coffee, tea, and general refreshments results in high risk of
substitute product such as Coca-Cola. Fourth is Supplier Power, which is
generally low as the business involves fair trade of coffee. The coffee suppliers
are being exploited and kept on delivering to produce product because of
underdevelopment of the producing areas and countries, the decision still lies
with the buyer. Finally would be Competitive Rivalry. It is relatively high as there
were many competitors in the local markets and within mainstream market such
as, Starbucks, Dome, McCafe, OldTown Coffee (Malaysia).