Porter Competitive Model: Soft drink Industry
Five Forces Analysis On Cola Wars & Soft drink Industry.
Soft drink industry : The Soft Drink Industry is primarily engaged in manufacturing non-alcoholic, carbonated beverages, mineral waters and concentrates and syrups for the manufacture of carbonated beverages. Soft drink industry is very profitable, mainly for the concentrate producers than the bottler’s. The leading players of the market are Coca-Cola, Pepsi Cola, and Cadbury Schweppes. In this industry, fierce rivalry between dominant producers Coca-Cola & Pepsi and the bargaining power of the buyers who place huge orders for soft drinks are strong, while the threat of new entry and the threat of substitutes are mild. And, bargaining power of the suppliers is conditional. Threat of Entry : New Entrants to an industry bring new capacity and a desire to gain market share that puts pressure on prices, costs, and the rate of investment necessary to compete. Threat of a new entry is considerably low in today’s soft drink market. In the initial stages of the indust...
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