Post on 22-Jan-2015
description
2. The Pepsi/Coke supply chain
Supplier
Supplier
Supplier
Supplier
Pepsi
Coca Cola
CCE
IB
Fountains
PBG
IB
Fountains
Supplier
End-customers
3. Profitability/Attractiveness of Concentrate Industry
5 Forces Analysis
1. Suppliers: Low power, low cost, commodity ingredients, many
suppliers
2. Substitutes: Mature market, new beverage trends
3. Buyers: Bottlers (low barging power) & fountains Low
power.
4. New Entrants: Unequal access to bottlers (soft drink
inter-competition act), economics of scale.
5. Competitors: Duopoly (Pepsi & Coke dominate the
market)
4. Is the concentrate industry profitable?
Yes, it is still profitable!
Why?
-Low capital costs
5. Duopoly, few actors share the profit 6. Huge growth potential