3.3 Porter’s 5 Forces: Threat Of Threat Of Bargaining Power Of Bargaining Power Of Competitive

3.3 PORTER’S 5 FORCES

Threat of new entrants

• Low barrier to entry because of the cheap imported furniture from China

Threat of substitutes

• Threat of substitutes is high due to the presence of major competitors like IKEA & other small furniture stores

Bargaining power of customers

• Bargaining power of buyers is high due to low cost of switching from our products to competitors’ products

Bargaining power of suppliers

• Bargaining power of suppliers is high since our only source of supplies is from China

Competitive rivalry

• We have 4 competitors and the major one is IKEA. Buyers may choose to flock in other shopping mall - Ardence Lab, Sunsuria & Tesco and spend their money there.