Question $20$

I$\text{'}$m trying to decide whether I would like to start a company to enter the garbage disposal industry $($a company that takes trash from the home to the dump$).$ Sales indicate that the garbage disposal market is large but there is negative growth in the market of $-2\mathrm{.}1\%$ as people start to recycle more. It would take $$100M$ of capital investment to create a garbage disposal facility. That is a lot of money for pretty much anyone and few other startups could afford to enter the industry. However, Jeff Bezos is my uncle, so he is going to give that money to me$.$ There are few other garbage companies nation$-$wide and there is little price competition. There is only a single company that makes garbage trucks. Conduct a five forces analysis.

Threat of New Entry

II$.$ Supplier Power

III. Intensity of Rivalry

IV$.$ Customer Power

Using just the information in this scenario, what factor$($s$)$ would concern you most about lower industry profitability?

Just III and IV

All of these factors are highly concerning

Just II

Just I, III, & IV

Just II and IV