“Create a Porter's Five Forces diagram for regional specialty coffee shops with supplier power from roasters and landlords, buyer power from price-sensitive commuters, rivalry among local cafes, substitutes from home brewing and chains, and new entrants facing a low equipment barrier.”
Read the decisions behind it.
Consider beans and lease costs separately.
Identify switching behavior among commuters.
Include both at-home and chain alternatives.
Use this diagram to frame competitive pressure before opening or expanding a group of coffee shops.
Other examples in this family.
Common questions
What are Porter's Five Forces?
They are supplier power, buyer power, competitive rivalry, threat of substitutes, and threat of new entrants.
Why define the market first?
The relevant competitors, customers, and substitutes change depending on whether the market is local, regional, or national.
Does the framework measure profitability?
It helps explain pressures that influence profitability, but it does not calculate profit on its own.