Every business has threat of entrants who wants to enter the same industry as you are in already. It could be directly from local or overseas entrants. This directly affects the total profit of the company and changes the attractiveness towards the products. New threats of entrants will further more explained in below points.
• Cost and time
• Cost advantages
• Entry barriers
• Special Knowledge & Experience
Cargills agri foods KIST is a well known large company in Sri Lanka. If another competitor wants to enter the same business as this there will be plus points to Kist Company as it is a very large company and if any new entrants wants to start something similar it will require a higher investment to start as they have to buy the machinery , equipment labors etc .But also However, due to the availability of leasing options and external finance from banks, investors, , new doors are opening for threats of new entrants which can effect KIST directly.