Responding to fellow classmate Clement Lau’s post regarding the analysis of Vancouver’s market in terms of utilizing the Porter’s Five Forces tool, I would have to disagree in the overall conclusion of the analysis. In respect to the success of small businesses and their entry into the hustling city of Vancouver, Clement stated that “I would think the degree of measurement with regards to the five forces are all listed as high”.

Honestly I can agree with 90% of that statement. Supplier and buyer power is high concerning number of customers, uniqueness of service, and cost of changing for small businesses. Threat of substitution, for sure is high; with endless options in the downtown Vancouver area for coffee for example. All an unsatisfied customer has to do it walk a block to find their new favourite coffee stop.

I would argue though that threat of new entry is not high, I would even argue that it is low. Especially with the ever recovering economy and all those families with it. The risk of entering such a vast, competitive, and established market – I would think – would seem as unattractive and undesirable for the average entrepreneur.

Competitive rivalry, as means of the resulted conclusions is high, and rightfully so.