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Also, because the grocery cost is one of the biggest spending buckets, the customer group is very price sensitive.
2) The threat of new entrance is high to existing players. Even though small players would find it is hard to get into this industry due to first move advantage including location, customer perception etc., the big players from other industries, with access to capital, access to customers and economies of scale, can easily come to grocery industry.
3) Rivalry among existing competitors is intensive. The number of competitors is high and many of them are close in size of power, such as Wal-Mart, Target and Costco...
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