threat of new entrant. Many of the sources Porter identifies as barriers to entry are strengthened from the retailer's perspective. These include the experience developed in managing their in-bound network effectively and economic of scale derived from the larger transport operation. As has been stated,price is important in the UK grocery sector. By supporting a more efficient distribution system it makes it more difficult for new entrants to enter the market. Therefore,the move to FGP has strengthened the incumbent retailer's competitive position. Being more efficient however, dose not preclude new entrants.It just has the effect of rising the hurdle for potential new entrants to compete against.