Porter's Five Forces Analysis Of Coke Cola By Michael Porter
From the perspective of Coke or Pepsi as the principal Concentrate procedures, do a Porter Five Forces analysis of the CSD industry using H/ M/ L for the strength of each force. What are your overall conclusions from this analysis?
In terms of a Porter Five Forces analysis, there are five competitive forces: threat of Entry and Substitution, bargaining power of buyers, bargaining power of suppliers, and rivalry among current competitors.
1) Threat of Entry: Low. In terms of financial and human resources, enough funds are required to negotiate CDAs with nationwide retailers so that they get the right to select shelf space. Also, access to distribution channels built high barriers because Coke can decide the shelf space by their own, while new companies need to invest for promotions, intense selling efforts, attractive advertising and so on.
2) Threat of Substitution: High. Since consumers prefer healthy drinks to sweeten carbonated drinks, concentrate procedures confront some risks, dominating their field with