Threats of new entrants

The threat of new entrants is limited by the cost of installation. Although economies of scale didn’t play a large role, expensive machinery is required. A large range of additional general machinery is necessary and some personnel.

(Source: [1])

In Estonia there are multiple companies, which offer the collection of e-waste, but this e-waste is being shipped abroad and processed elsewhere. The switching costs for these garbage collectors are low, as the changes for them are only logistical and organizational.

There are only a few garbage collection companies active in Estonia, so the numbers of suppliers of e-waste are low. It is wise to set a deal with one or more of these companies in order to receive sufficient quantities of recyclable e-waste. It is necessary to contact these companies prior to market entry in order to get access to the distribution channels.

(Source: [2])

Because the e-waste separation starts at source; the companies and consumers who discard the used electronic equipment, the local governments have to be informed of the intention to recycle e-waste as well.

An e-waste processing company entering the Estonian market has to communicate to the active garbage company that they provide a different service rather than being a threat or competitor to them. An incumbent e-waste recycling company defending their market share is not a threat in Estonia, as the facilities to recycle e-waste are simply not there yet.