John

It may not be the biggest threat, but the threat from rivals is definitely a concern.

What makes the threat from rivals such a big deal?

It's easy to exit the industry by selling off production or cancelling outsourced production.

There's not much room to differentiate products in this industry.

The industry is only growing at $1\mathrm{.}5\%$ per year.

There are lots of competitors that are all pretty much the same.

Outsourced manufacturing makes it easy for anyone to enter the industry.