BUYER POWER (LOW)
- Customers can’t affect price directly
THREAT OF NEW ENTRANTS (MEDIUM)
Current brands are established but it’s not
difficult for newcomers.
Capital costs are medium
Economies of scale allow for profitable
businesses
USER: pyroz416
DATE: August 26, 2019
- They don’t have to buy donuts.
SUPPLIER POWER (LOW)
COMPETITIVE RIVALRY (HIGH) - Big Corps like Starbucks control their
suppliers. They can switch easily.
There are already dozens of brand name donut shops in
- Small companies can’t do much about
the US.
suppliers, but will be affected by market
Tim Hortons, Krispy Kreme, Dunkin’ Donuts are the big prices determined by the big corps.
ones. - Any price fluctuation would result in the
company eating the loss temporarily.
THREAT OF SUBSTITUTES (HIGH)
Easy for big food brands to enter the market. McDonald’s
in coffee market.
Many brands offering “Gourmet” donuts to entice
customers