Introduction In today's competitive and rapidly changing business environment, it is important to understand organizations' strategic issues and improve their ability for long-term success; Organizations must study the external and internal environment. Porter's five forces shape the external environment of exam organizations and the internal environment of value chain exams. Five forces help companies determine the attractiveness and profitability of a market in which they compete and help organizations make a qualitative assessment of their strategic position. Wit and Meyer (2010: p264) suggest that the ultimate aim of competitive strategy is to manage the rules of the industry and, if possible, make changes in favor of companies, whether this industry is local, or global or produces a product or a service, the Competition is embodied in five competitive forces: the entry of a new competitor, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitutes, and the rivalry among existing competitors. I will apply Starbucks in my analysis.¬¬¬¬The Threat of New CompetitorsNew competitors can increase and influence the degree of competition and profitability in the industry. The threat of new entries depends on the barriers to entry into the market; these barriers can come in different forms and are used to prevent new businesses from entering an industry. Higher barriers exist in some industries (e.g. pharmaceuticals, airlines), while some industries have low barriers to entry, e.g. restaurants (Jobber 2010; P: 706). “If barriers to entry are low and newcomers expect little retaliation from entrenched competitors, the threat of entry is high and industry profitability is moderate. It's an entry threat, not... half of the paper... rter's five forces and value chain analysis are powerful strategic tools for Starbuck to evaluate its current dynamic and competitive industry. Understanding these strategic tools is the starting point and is essential for Starbuck towards developing a successful long-term strategy for future organizations. It also gives Starbuck a basis for evaluating his strengths and weaknesses. Therefore, Starbuck should use these analyzes to create and sustain competitive advantages, in order to cope with and incorporate industry conditions and organizational capabilities into its strategy. Porter (2008: p88) suggests that five forces help managers develop productive strategic action to better deal with industry competition, predict and exploit changes in the industry, and create a balance between the five forces to build a more positive for the company.