Analyze the structure $($Porter$\text{'}$s $5$ Forces$)$ of the soft drink industry. Why are Coke and Pepsi so profitable? What prevents other firms from entering this industry and accessing some of those high profits?

Compare the economics $($costs and profits$)$ of soft drinks $($concentrate$)$ versus bottlers. Why is the concentrate business more profitable than the bottling business? Why do you think Coke & Pepsi are in the bottling business?

Team Assignment: Create a $5-$year proforma in Excel which projects the revenues, costs, and profits $($both earnings before interest, taxes, and amortization $($EBITDA$)$ and earnings before taxes $($EBT$)$ for a company who enters the U$.$S$.$ carbonated soft drink industry and who attempts to build a $10\%$ market share position in the U$.$S$.$ carbonated soft drink industry within a five$-$year time period $($please include fixed and variable costs in your analysis$).$ To calculate interest expense, assume that you will need to raise $50\%$ of the capital you require through bank financing at $10\%$ interest. To calculate depreciation expense, assume that only a niche player $($with less than $5\%$ market share$)$ can access the bottlers$/$distributors of Coke or Pepsi, which means you will need to build bottling plants $($which you can depreciate using straight line depreciation over a $30-$year life$).$ Please provide your assumptions along with a one$-$half page description of your market entry strategy.