5 Forces Analysis Of Porter's Five Forces For The Bag Industry

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Five Forces Analysis Threats of New Entrants - High The threat of new entrants for the bag industry is high since putting up a bag business is easy. There are a lot of different companies that are already in this kind of industry. There are international and local businesses that have successfully established their brands here in the Philippines. There is an increasing percentage of local brands here in the Philippines which indicates that the barriers to entry are low in the bag industry. Entering in this type of business can be easy for entrepreneurs who already have enough capital to manufacture bags, who already have a background in this type of industry, who are updated in the current fashion trends and those who already know a supplier and a manufacturer that they can do business with. To be able to enter in this type of industry, you will be needing a money amounting to Php 67,416 for the costs that will be incurred for the first month of the operation of the business. Rent for the bazaar amounting to Php 7,500 and Php 300 for the storage, Php 7,032 for the necessary licenses and permits, Php 991.2 for the electricity, Php 300 for the transportation expense, Php 999 for the usage of…show more content…
There are different types of bag that can be a substitute for our product and some of these are backpacks, tote bags, pouch, and handbag. There are also a lot of other international and local brands that have already established their brand in the bag industry and offer the same type of bag. Having a lot of substitute products and competitors increase threat of substitutes since it gives the customers a lot of options to choose from. The different types of bags mentioned earlier offers a similar function with a sling bag. In general, a bag’s purpose is to carry and hold things. These different types of bags just differ in design and

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