PRESENTATION ON

Porter’s 5 Forces Model and

Value chain Model of
NAME OF THE PARTICIPANTS
Sr. no. NAME OF THE PARTICIPANTS
1. VAGHELA JAIMINKUAMAR ALPESHKUMAR
2. JAYSWAL RAVI PRAKASHBHAI
3. PRAJAPATI HITESH RAJESHBHAI
4. PATEL DHRUMIL DHARMENDRABHAI
5. VAGHELA ALPESH PRAHLADJI

6. NAIMISH M. SOJITRA
 INFORMATION :
Type Cola
Manufacturer The Coca-Cola Company
Country of origin United States
Introduced May 8, 1886; 134 years ago
Color Caramel E-150d
Variants •Diet Coke
•Diet Coke Caffeine-Free
•Caffeine-Free Coca-Cola
•Coca-Cola Zero Sugar
•Coca-Cola Cherry
•Coca-Cola Vanilla
•Coca-Cola Citra
•Coca-Cola Life
•Coca-Cola Mango

Related products Pepsi

RC Cola
Inca Kola
Kola Real
PORTER’S FIVE FORCES
MODEL
1. THREAT OF NEW ENTRANCE

Company like coca cola is so popular over the world that, threat of new entrance is very low
here. There are some major thing that make threat of new entrance nil for coca-cola

Brand Name: The brand cola is very big that’s why if people get an option of a new cola
and among coke, in almost all the case people would go for coke

Distribution channel: coca-cola has a worldwide distribution channel. It has many plant
around the world. Its very difficult to match up that for new companies.

Huge initial investment: for matching up to the level of coke, you need huge initial
budget for plant and others and that seems impossible for anyone

Loyal fan base : coke’s biggest strength is their loyal fan base . for new companies it will
take hundred of years for this kind of fan base.
 2. BARGAINING POWER OF BUYERS
The bargaining power of individual customers in case of Coca Cola is low. Individual customers
generally buy small volumes and they are not concentrated in specific markets either. However, the
level of differentiation between Pepsi and Coca cola is low. Mostly they sell similar flavors. Switching
costs are not high for customers and still the two brands enjoy high brand loyalty. The customers
of coca cola are not price sensitive. Backward integration is not a possibility for the
customers whether it is an individual customer or a large retailer. If a retailer acquires some
bargaining power then it is only because it buys in large volumes. Overall the customers’
bargaining power is weak.
 3. THE BARGAINING POWER OF SUPPLIERS
The main ingredients for soft drink include carbonated water, phosphoric acid, sweetener, and
caffeine. The suppliers are not concentrated or differentiated.

Coca-Cola is likely a large, or the largest customer of any of these suppliers.

The bargaining power of suppliers of Coca Cola is weak. It is so because the number of
suppliers is high and the switching costs for Coca Cola is low. While Coca Cola can easily
switch from one supplier to another, it is not possible for any supplier to switch away from
Coca Cola as easily. That can lead to losses for any of the suppliers.
 4. THREAT OF SUBSTITUTE PRODUCTS:
Substitute of beverage drinks would be juices, water, tea or coffee. Coke has a plan for this too.
They have strengthen its wings for this kind of products too. They manufacture water juice and
cold beverages and thus reduced the threat of substitute products.
5. COMPETITIVE RIVALRY BETWEEN THE EXISTING
PLAYERS:
There are two major players in the soda industry and they are Coca Cola and Pepsi. There is
intense rivalry between the two major players. There are a few smaller players too but they do not
pose a major competitive threat.  The two main players are nearly of the same size and they have
similar products and strategies. The level of differentiation between the two brands is also low and
therefore the price competition is intense. People have already heard of the Cola wars. So, the level
of competitive rivalry between the existing firms is a strong force.

Although coke has better sale than Pepsi worldwide but

Pepsi has more control on us market and Pepsi has
non beverage item that make them more strong.
VALUE CHAIN MODEL OF
COCA COLA
 PRIMARY ACTIVITIES OF COCA COLA
1. INBOUND LOGISTICS :

Coca Cola has managed a very large supply chain which consists of tens of thousands of farmers
and suppliers. It treats its suppliers as business partners.  These business partners provide its system
with raw material including ingredients, packaging and machinery as well as goods and services. 

However, it has also set guiding principles for the suppliers to follow. At a minimum these
suppliers are required to comply with all the applicable laws and regulations. In its guidelines Coca
cola also emphasizes on responsible environmental and workplace policies and practices. It has
managed excellent relationship with it suppliers and that helps it maintain a continuous and
uninterrupted flow of raw material.
 2. OPERATIONS :

 The primary way that our products reach the marketplace starts with Coca-Cola, which
manufactures and sells concentrates, beverage bases and syrups to bottling operations. Coca
Cola also owns the brands and is responsible for consumer brand marketing initiatives.
 3. OUTBOUND LOGISTICS :

The customers of Coca Cola include the grocery stores, restaurants, street vendors, convenience
stores, movie theatres and amusement parks. The bottling partners of Coca Cola work with the
customers to execute localized strategies developed in partnership with Coca Cola company.
 4. SERVICE OF COCA COLA :

Coca Cola maintains its customer service practices via online chat with a virtual agent in official
website of the company dedicated customer service phone.

Coca Cola website has a comprehensive FAQ that covers the most aspects of their products in a
detailed manner and the website also addresses a wide range of rumors related to the brand direct
and indirect ways.
 5. MARKETING AND SALES OF COCA COLA :

Coca Cola is a globally recognized brand.  However, it has not become as famous without focusing
on marketing. The coca cola logo is one of the most recognizable logos. Its brand is also known for a
very heavy expenditure on marketing. Apart from digital channels and social media, Coca Cola also
uses print media and outdoor marketing to promote its brand and products. It also runs campaigns
from time to time. Last year it brought a major shift in its marketing strategy and rather than
promoting its brands separately, it is now focusing on promoting the entire brand together. Its
products are sold in more than 200 countries worldwide. From retail stores to restaurants and
theatres, Coca Cola products can be seen everywhere decorating the shelves.
 SUPPORT ACTIVITIES
1. TECHNOLOGY :

Coca Cola also maintains heavy focus on technology and research and development.  From
production to distribution and sales, everywhere it has invested in technology. Apart from that it
also focuses on technological innovation through R&D. It has six R& D centers around the world
that  are connected to external technology and assessment hubs connecting it with partners, tech
start ups  and university researchers.  

The company collaborates with partners in the other industries to fuel innovation across products,
packaging, equipment and the other things. In this way, Coca Cola is continuously focusing on
innovation for growth.
 2.HUMAN RESOURCE MANAGEMENT OF COCA COLA :

This is also a very important area of Coca Cola’s value chain.  The company has focused on hiring
and developing talent and creating an environment of learning and growth. It pays them good
salaries and also complements the payments with rewards. 

 Coca cola focuses on employee motivation and engagement. Apart from it, the focus is on
performance management to provide the employees with career growth.
 3. PROCUREMENT :

Coca Cola procures from thousands of farmers and suppliers. It uses technology to make the entire
process easier and efficient.  

It has maintained good relationships with its suppliers and provided guidelines that the suppliers
are required to follow.
 4. FIRM INFRASTRUCTURE OF COCA COLA :

The role of a firm’s infrastructure is central to its success. Coca Cola has managed a large
infrastructure including its management, human resources, financial and technological
infrastructure.

 It is also educating its suppliers and focusing on innovation through its R&D centers.