Pinatex Case Study

Threat of new entry
Pinatex is a product which is made from pineapple leaves, this works like natural leather originally non woven textile.
• Time and cost of entry: Here time and cost of entry is low. Pinatex leaf is available in Bangladesh. At first any entrepreneur should gather capital and gather knowledge about pinatex and how the business can run. Then from where he can gather the pineapple leafs. In Bangladesh here many pineapple grow every year. So gathering the pineapple leafs is easy and the cost of pineapple leafs is also low.
• Specialist knowledge: At first need to know what is penatex. How it processed from pineapple leaf. How the leather made from pineapple leaf. How the products can be made by penatex.
• Economies of scale:

Then according to time cost can vary. If the business is for long time there is cost benefit.
• Barriers to entry: Need to the marker condition is there any competitors there in market. Are there any barriers to enter in market with this product.
2. Threat of new Substitute
A substitute product uses a different technology to try to solve the economic need.
• Substitute performance: Is there any substitute in market of pinatex. Yes we all know cotton, lather is a substitute of pinatex. But the fact is that is the customer is loyal to pinatex product. If the performance the product if good and the customer is satisfied by the product performance then the customer won’t sift to another product.
• Cost of change: Is the cost of switching is increased. If the switching cost is more than normally customer won’t switch product. They remain loyal to existing product.
3. Bargaining power of customers
Sometime in business bargaining of customer’s power is more.
• Number and size of customers: Number of customers varies. In terms of pinatex number of customer can be more or less. Sometimes if there is only one customer, producer can make profit. Because the order of customer is