Threat of New Entrants

Porter’s Five Forces Analysis

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Company: _________________ 
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Very High High

Low Very Low

Buyer Power
Supplier Power Competitive Rivalry
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Very High High
Low Very Low Very High High
Very High High Low Very Low
Low Very Low

Threat of Substitution

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Very High High

Low Very Low
 Threat of New Entrants
Porter’s Five Forces Analysis
There are no significant barriers to
Example: AJ’s Cereal Co. entry to the cereal market.

Very High High

Low Very Low

Buyer Power
Competitive Rivalry
Supplier Power People need food, but can skip
Companies like General Mills breakfast and are price sensitive to
Ingredients to make and package have huge market share.
foods like cereal and often look for
cereal are all commodities. discounts and bargains.
Very High High
Very High High Low Very Low
Very High High
Low Very Low Low Very Low

Threat of Substitution

 Other breakfast foods.

 Not having breakfast.
 Drinking coffee.

Very High High

Low Very Low