Porter's Five Forces

PORTER'S FIVE FORCES

Table of contents
• Porter's five strategies for Starbucks
• Recommendations
• References

Porter's five strategies for Starbucks
• It is a simple tool for analysing the level of
competition in industry.
• It helps to analyze how the business is
positioned relative to the competition and
strength.
• The five forces which influence the competitive
position within industry are:
• a) Threat of new entrants: The threat of new
entrants is moderate.
• The barriers are not very high and the initial
investment is not very high to start a coffee
brand.

Cont.
• The level of saturation is moderately high.
• The local brands can compete with Starbucks at local level.
• b) Threat of Substitutes: The number of substitutes is moderate to high.
• There are substitutes available like tea and other beverages like soft drinks.
• There are restaurants who are providing good ambience.
• Other substitutes are through coffee machines now being used at home to make coffee.