The threats of new entrants should be low despite of low barriers of entry in the lights of low costs of set-up. The brand equity of J&J is relatively high and it has great impacts in the industry so that a large number of suppliers prefer to sign contracts with it rather than the new entrants that benefit for enhancing suppliers' brand and engaging more profits, Lafe's Body Care is an example of new entrant who launch a new baby care product line in recent years.
In addition to the switching costs for customers, customers are keen on the brand with quality guarantee using for baby or not the less discrepancy of prices.