In terms of new entry
In terms of new entry, it’s easy to enter to the coffee industry in china due to the capital to start up a coffee shop is not very high and also it’s not very hard to brew the coffees because there are coffee machines to make it. Companies which has a brand identity will not be pretentious by new entrants. For threat of substitutes, the drink which is traditional and high consumption is tea. There are many traditional tea shops in china because of their living habit which is drinking tea. Local Chinese café’s which are offering Chinese cuisines together with coffee is considered to be a major threat. The bargaining powers of buyers has increased as consumers wants a relax environment where they could enjoy their food and beverages.
