Cola wars
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Transcript of Cola wars
Cola waRS CONTINUE
(PORTER’s FIVE FORCES ANALYSIS)
PRESENTED by:
Name Roll no.
Anil Joshi PGP2011543
Gaurav Gupta PGP2011631
Harshit Gupta PGP2011644
Kapol Sarkar PGP2011680
Rajesh Kumar L. PGP2011815
Richa Gupta PGP2011822
Tanya Malik PGP2011918
Bargaining powers of buyers depends
on their negotiation power
Bargaining power of
suppliers is low
Threat of substitute products is high ( Non cola beverages)
Threat of new entrants is low (Other Cola Companies)
(Intense competition Pepsi vs Coke)
Rivalry among existing firms
Threat of
new entrants
Bargaining power
of suppliers
Bargaining power
of buyers
Threat of
substitutes
PORTER’s FIVE FORCEs analysis
PORTER’s FIVE FORCEs MODEL
Threat of
New
Entrants
Threat of
New
Entrants
Bargaining power of
Buyers The profitability in each of these segments clearly illustrates the buyer power based on their power to negotiate. Vending : No negotiating powers with buyers as the channel directly serves the customers Fountain: Higher bargaining powers as CSD companies frequently sacrificed profitability Supermarkets: Main distribution channel with good bargaining power due to intense competition for shelf space Convenient stores: Extremely fragmented segment thus low bargaining power
Threat of
New
Entrants
Threat of New Entrants
Strong Bottling Network
High Expenditure on Advertising, Marketing
activities & Bottler Support
High Brand Image and Loyalty Intense
Competition for Retail Shelf
space Expected Retaliation
Bargaining Power of
Suppliers
Many suppliers
Alternative ingredients
available
Low switching cost (Non – differentiated
products)
PORTER’s FIVE FORCEs MODEL
Threat of
New
Entrants
Threat of Substitutes
Large numbers of substitutes like water, beer, coffee, juices are
available to the end consumers
Switching cost is low
Rivalry among Existing
Competitors
Intense competitions
between Pepsi and Coca Cola (Price War)
Slow industry growth
precipitated fights for market share
High exit barriers
Market share available
for the rest of the competitors were too
low