easily achieved even in the presence of giants like Walmart. Small retailers can enter the market and compete on the basis of convenience, location, specialty, and other factors. This force is broken down into some of its component external factors, as follows:
Low cost of doing business (strong force)
Moderate capital costs (strong force)
Moderate cost of brand development (moderate force)
It is costly to develop a new entrant’s brand. This condition exerts a moderate force on companies like Walmart. However, the cost of establishing a new retail firm and the cost of running it are low to moderate. Thus, new entrants can keep operating and become potential threats to firms like Walmart.