The second force in Porter's model, which will be applied to the analysis of the
industry environment in which Starbucks was incubated, is the potential for new entrants.
The primary deterrents to new entrants into any industry are the barriers to entry. The
higher the barriers to entry are within any given industry the smaller the threat of new
entrants to that industry. (Porter, 1998, p. 7) The specialty coffee industry does not put a
high premium on economies of scale. Although, companies with national distribution in
the coffee industry at large experienced some discounts through bulk purchases and
superior infrastructures, their advantages were small. This alone would imply low