The document analyzes Porter's Five Forces for the soft drink industry. It finds the threat of new entry is medium due to Coke and Pepsi's brand loyalty and the high costs of brand development and investment required to enter the industry. Rivalry among existing firms Coke and Pepsi is high as they have long fought for market share with undifferentiated products and switching costs. It also briefly mentions the other three forces will be analyzed: threat of substitutes, bargaining power of buyers, and bargaining power of suppliers.
The document analyzes Porter's Five Forces for the soft drink industry. It finds the threat of new entry is medium due to Coke and Pepsi's brand loyalty and the high costs of brand development and investment required to enter the industry. Rivalry among existing firms Coke and Pepsi is high as they have long fought for market share with undifferentiated products and switching costs. It also briefly mentions the other three forces will be analyzed: threat of substitutes, bargaining power of buyers, and bargaining power of suppliers.
The document analyzes Porter's Five Forces for the soft drink industry. It finds the threat of new entry is medium due to Coke and Pepsi's brand loyalty and the high costs of brand development and investment required to enter the industry. Rivalry among existing firms Coke and Pepsi is high as they have long fought for market share with undifferentiated products and switching costs. It also briefly mentions the other three forces will be analyzed: threat of substitutes, bargaining power of buyers, and bargaining power of suppliers.
Soft drink industry is a duopoly market, a huge market share is acquired by Coke and Pepsi for a long period of time and have gained a brand loyalty among the customers, and customers are not likely to try a new brand. No switching cost to customer High cost of brand development makes it difficult for new firms to compete with Coke and Pepsi Huge investment is required for entry in this industry. Huge barrier to exit
2) Rivalry among existing firms (High)
Throughout the history of soft drinks industry both Pepsi and Coke have fought for a huge market share. Undifferentiated product Switching cost
3) Threat of substitute products
4) Bargaining power of buyers 5) Bargaining power of suppliers