This part of the Five Forces analysis model shows that new entrants have significant but not strong effect on Starbucks Coffee’s business. New entrants can compete against Starbucks because of the moderate costs of doing business and supply chain development. However, new entrants find it difficult to compete against established brands like Starbucks because it is very costly to develop a strong brand. Thus, this component of the Five Forces analysis indicates that the threat of new entrants should be a secondary priority in Starbucks Coffee’s strategies.