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Threat
of new entrants: Low to Moderate. The
threat of newcomers for Starbucks in Iceland is moderate. The saturation’s
status in the field is comparatively high. The starting investment to establish
a coffee brand is not genuinely high, and the same case could be applied for the
barriers. Newcomers in Iceland can challenge brands like Starbucks at a local
level. Although, it is undoubtly difficult for small businesses to compete against
strong brands like Starbucks; therefore, their chance of being successful stays
low to moderate.

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