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Sindhu's World: Five Forces Analysis On Cola Wars & Soft drink Industry.
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Sindhu's World
My Travel Blog/ A note to pen down my thoughts:)
Friday, July 16, 2010
Hello!
Five Forces Analysis On Cola Wars & Soft drink Industry.
Welcome to my world of travel experiences, interesting assignments & thoughts, ranging from insight to weirdness! 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 industry, Coca-cola was the dominant leader of the market, and then new entrant Pepsi made a huge impact on sales and profits of Coke. But, today Cola-Wars between Coke and Pepsi are so dominant, that possible threat of a new entrant is relatively low.
The several factors that make it difficult for the new companies to enter the soft drink market include:
1. Role of bottlers:
Bottlers purchase concentrate, add carbonated water and high-fructose corn syrup, bottle the resulting CSD product and deliver it to customer accounts. The bottling process is a capital-intensive and
Sindhu's World: Five Forces Analysis On Cola Wars & Soft drink Industry.
Share
0
More
Next Blog»
Create Blog
Sign In
Sindhu's World
My Travel Blog/ A note to pen down my thoughts:)
Friday, July 16, 2010
Hello!
Five Forces Analysis On Cola Wars & Soft drink Industry.
Welcome to my world of travel experiences, interesting assignments & thoughts, ranging from insight to weirdness! 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 industry, Coca-cola was the dominant leader of the market, and then new entrant Pepsi made a huge impact on sales and profits of Coke. But, today Cola-Wars between Coke and Pepsi are so dominant, that possible threat of a new entrant is relatively low.
The several factors that make it difficult for the new companies to enter the soft drink market include:
1. Role of bottlers:
Bottlers purchase concentrate, add carbonated water and high-fructose corn syrup, bottle the resulting CSD product and deliver it to customer accounts. The bottling process is a capital-intensive and