Potential Entrants

Even where there is no competition, the farmer must always anticipate new competitors.  This may mean satisfying customers even when there is no competition.

Buyer Power

In cases such as farming, buyers in the goods market tend to have power to dictate the prices.  This is especially true with middlemen. In other cases, there tend to be too many producers that give buyers more power to dictate prices. These and many other similar challenges should be anticipated.

Supplier Power

This is where suppliers in the factor market and product market may have power over the farmer and thus dictate prices of land, labour, capital and other raw materials.

Intensity of Rivalry

Typically, this occurs in the competitive market where others produce exact products, such as in farming where there are very many producers of the same product. This may mean fighting each other by cutting prices while improving quality and increasing amounts per unit price.