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(Threat of new entrants, Competitive rivalry), ex:Boeing or Airbus …

- - - - raw materials,favorable locations, government regulations,and difficult to imitate technologies and processes
  - - - have to make a very large imnestment
        
        develop a cost-competitive production base
      - supply side
    - - per unit costs decline when you produce a few different products together
    - - the unit cost of production go down with scale
    - - unit costs decline over
        time as producing more and more units over time
  - - - customer loyalty
    - - shelf space in retail stores is limited
      - the logistics of distribution are just so complicated and expensive
  - - - Existing firm might respond to entry with aggressive pricing, advertising, new products, etc.
- - - - customer loyalty
        
        heterogeneity among consumer preferences
    - - the sale of products or services in the industry is
        in the hands of a very small number of firms
        
        monopolist
    - - difficult to grab market share from others
      - lose loyal customers who are willing to pay the original price
      - The small amount of extra revenue and extra profitis not enough to offset the loss profits from existing customers shown