Porter's Five Forces Analysis Of Calm Coffee

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In this section, we use the Porter’s 5 forces model to evaluate the attraction of the industry when focus on the following 5 forces, Calm coffee faces the impact of the 5 forces, as outlined in Porter’s model. These five forces have different intensity or advantage based on Calm coffee position, as follows:

This part of the 5 Forces analysis shows that competition is one of the most important of Calm Coffee need to concern. The businesses have many competitors, which have different sizes, specialties and strategies. For example, Calm faces the competitive force of McDonald’s and Starbucks, as well as other specialty coffeehouse. The strong force of competition is also because of the low switching cost, which means that the customers can easy to change from Calm to other brands. So, based on this component of the Five Forces analysis, competition should be the top-priority challenges of Calm Coffee.

In this part of the 5 Forces analysis model, the bargaining power of buyers is also one of the most vital forces affect to Calm Coffee’s business. Customers can easily shift from Calm to other brands because it is affordable to do so. Customers can also stay away from Calm if they want to, because there have many substitutes in the market, such as instant beverages and drinks from restaurants. These strong factors cover up the fact that individual purchases are small compared to Calm Coffee’s total revenues. Therefore, this part of the Five Forces analysis model shows that the

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