Poter Five Forces Essay Example for Free

Poter Five Forces EssayThe environment analysis of Coca-cola industry plunder be through with(p) as Buyers There are some companies to buy the flabby drink products. The companies that purchase cold drink includes Fast fare franchises, food store, convenience stores and vendings. Generally, the individual buyers for small retails do not have pressure on coca-cola industry. But, the large retailers like Wal-Mart have pressure or bargainin power on the coca cola because of its large order quantity. But again , the bargaining power of the buyers is lessened because of the loyalty of the end consumers towards coca-cola. Substitutes Generally, there are many substitues of coca-cola. It includes water, coffee, tea, fresh juices, etc. Coca-cola is able to counter its substitutes through brand equity, advertisment and easy availability. Coca-cola has been spending a huge budget on its advertisment with diverse concepts and it is also easily available in almost every corner of the w orld. They also began to produce these substitutes (eg- pepsi) on their own to tap into that segment of the market. Barrier to presentation The barrier to entry in the cold drink industry is fairly high.The franchising agreement with the existing bottling companies prohibit bottlers from taking a impudently soft drink companies. Even though there is the entry of any new soft drink company in the market, it would not be of any affright for coca-cola company. Suppliers The main ingredents of soft drink are carbonate water, phodphoric acind , sweetner and caffeine. The suppliers of these ingredents are not concentrated or differentiated. Many suppliers can be available easily. If a new soft drink company enters the market, it would be very easy for a new soft drink company to find a supplier voluntary to sell these ingredents to them.Rivalry Talking about todays context , the main competitor of coca-cola is pepsi. These both soft drink is able to survive in the market giving throat to throat competition to each other. Both have their own marketing concepts, advertisment concepts and stategies. The slogan of coca-coal is Open Happiness which generally focuses on togetherness and spreading happiness. Likewise, other soda brands that became famous was Dr. Pepper because of its unique flavour. Thus, in this way the environment analysis on coca-cola can be done through Poters Five Forces Model.