Practice evaluating the industry five forces using the strategy tools presented in this chapter and using the cola industry case included in your textbook.

Read the case, Coca-Cola, Pepsi, and the Shifting Landscape of the Carbonated Soft Drink Industry.

1. Use the strategy tool presented in this chapter, along with data from the case, to evaluate:

a. The intensity of rivalry within the cola manufacturing industry (where Coca-Cola and Pepsi are prominent firms). Is rivalry high, medium, or low?

b. The intensity of supplier power within the cola bottling industry (where Coca-Cola and Pepsi are prominent suppliers). Is supplier power high, medium, or low?

2. Where sufficient data aren’t available, use qualitative evidence to evaluate the strength of a particular factor. Whether there is sufficient data or not, fill in the explanation/data line of each strategy tool where the data can be found and/or a summary of your logic.

3. Which industry is likely to be more attractive: cola manufacturing or bottling? Why? Use your analysis to back up your claim.