Porter's Five Forces Worksheet
• For instructions about Porter’s Five Forces Analysis, visit www.mindtools.com/rs/Porter.
High Force: it is easy to enter into High Force: There are many coffee
this market place, with relatively houses populating for example, our
low investment required. Despite high streets,hospitals, airports and
their being large well known coffee shopping centers. Competitive
houses for example Costa and rivalry is fierce. Retailers need to
Starbucks, many independant ensure they offer unique value to
retailers enter the market and their customers, they have to
succeed. identify and retain their USP (unique
selling point)
Relating this to the main product of
coffee, the strength of this force will
largely depend on where the coffee
is produced and how many suppliers
dominate the market. If there are
High force: high due to the level of
few suppliers then they will have
competition, customers have lots of
power and therefore present a high
choice. Coffee houses can attempt to
force. If there are many suppliers
reduce buyer power by
then then will have limited power,
implementing loyalty schemes,
for the coffee house will have
which encourage the customer to be
several suppliers to chose from and
Medium Force: Whilst there are loyal on the promise of free cups of
therefore will present a low force.
several substitutions for a hot drink, coffee.
if coffee is required then the threat
of substitution will be low. © Copyright Mind Tools Ltd, 2006-2015.
Please feel free to
However, copypeople
more this sheetare
for buying
your own use and to share with friends, co-workers or team members, just as long as you do not change it in any way.
their own coffee machines for home,
and this therefore may reduce the
number of visits to a coffee house.
