Assignment Guide: Coke and Pepsi Case

To answer the assignment question, you should apply Porter

$$

s Five Force Model analyzing

the industry, using the following guides:

a

$.$

$$Concentrate manufacturing

i

$.$

$$Barriers to entry

$$

$$what are they?

ii

$.$

$$Substitution

$$

$$How do the soft drink companies get away with charging

$

$1$

$.$

$0$

$0$

$$for a product when the

$$

healthy

$$

$$substitute

$($

tap water

$)$

$$is free?

iii. Suppliers

$$

$$Do suppliers have any real power to the concentrate

manufacturer? Who are they?

$$

Not sugar

$($

added by the bottler

$)$

$$

Not water

$($

added by the bottler

$)$

$$

Then what really goes into regular Coca

$-$

cola?

iv

$.$

$$Buyers

$$

$$How much power do they have? Who are the buyers for the

concentrate manufacturer? You have to separate immediate customer and

final customer of concentrate products.

v

$.$

$$Rivalry

$$

$$How can companies make so much money in the middle of a

$$

war

$$

$?$

$$Who are the major players of the

$$

war

$$

$?$

$$What are largely focused

in the competition? Who has been winning the war?

b

$.$

$$Bottlers

i

$.$

$$Barriers to entry

$$

$$what levels of barriers to entry of bottlers?

ii

$.$

$$Substitution

$$

$$Any substitutes for bottlers?

iii. Suppliers

$$

$$Who are suppliers of bottlers? Do they have power?

iv

$.$

$$Buyers

$$

$$Who are the buyers?

$($

fountains

$,$

$$vending$,$ food

stores

$/$

supermarkets

$,$

$$and then warehouse

$)$

v

$.$

$$Rivalry

$$

$$competition among bottlers?

After you have done Porter

$$

s Five Force analysis on both Concentrate business and Bottler,

draw a summary on the profitability of each business, Coke and Pepsi

$$

s position in the

industry and market, then write down what we can take away from this case as a conclusion.