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Porter's 5 Forces for coca cola
downtherabbithole1511
Created on November 13, 2020
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Transcript
- Coca cola has built a name for itself holding a significant market share in the industry resulting to costumers not very likely trying a new brand
- The odds of a new entrance in the beverage industry are low but even if new products or companies are lunched the prices and offered product will be similar to coca cola’s eliminating the possibilities to gain over consumers
- Smaller brands or new entrances do not have enough human resources to compete with the bigger ones
- The competitors have the same prices as Coca Cola
- Consumers have changed their preferences into a healthier lifestyle- not drinking soft drinks
- The buyer power is higher concerning the in- store sales where the product is sold in bulk (i. e. supermarkets)
- Many substitutes of coca cola- the beverage is easy to duplicate with low cost and good quality
- High availability for a wide range of soft drinks in the industry
- The threat of substitute products is moderate based on the costumers’ switching decisions
- Coca cola uses a variety of materials in case the prices go up to one of them the company can switch to another
- The suppliers depend way too much on coca cola owning more bargaining power compared to other firms
- Forward integration is difficult for the supplier