Cola waRS CONTINUE

(PORTER’s FIVE FORCES ANALYSIS)

PRESENTED by:

Name Roll no.

Anil Joshi PGP2011543

Gaurav Gupta PGP2011631

Harshit Gupta PGP2011644

Kapol Sarkar PGP2011680

Rajesh Kumar L. PGP2011815

Richa Gupta PGP2011822

Tanya Malik PGP2011918

Bargaining powers of buyers depends

on their negotiation power

Bargaining power of

suppliers is low

Threat of substitute products is high ( Non cola beverages)

Threat of new entrants is low (Other Cola Companies)

(Intense competition Pepsi vs Coke)

Rivalry among existing firms

Threat of

new entrants

Bargaining power

of suppliers

Bargaining power

of buyers

Threat of

substitutes

PORTER’s FIVE FORCEs analysis

PORTER’s FIVE FORCEs MODEL

Threat of

New

Entrants

Threat of

New

Entrants

Bargaining power of

Buyers The profitability in each of these segments clearly illustrates the buyer power based on their power to negotiate. Vending : No negotiating powers with buyers as the channel directly serves the customers Fountain: Higher bargaining powers as CSD companies frequently sacrificed profitability Supermarkets: Main distribution channel with good bargaining power due to intense competition for shelf space Convenient stores: Extremely fragmented segment thus low bargaining power

Threat of

New

Entrants

Threat of New Entrants

Strong Bottling Network

High Expenditure on Advertising, Marketing

activities & Bottler Support

High Brand Image and Loyalty Intense

Competition for Retail Shelf

space Expected Retaliation

Bargaining Power of

Suppliers

Many suppliers

Alternative ingredients

available

Low switching cost (Non – differentiated

products)

PORTER’s FIVE FORCEs MODEL

Threat of

New

Entrants

Threat of Substitutes

Large numbers of substitutes like water, beer, coffee, juices are

available to the end consumers

Switching cost is low

Rivalry among Existing

Competitors

Intense competitions

between Pepsi and Coca Cola (Price War)

Slow industry growth

precipitated fights for market share

High exit barriers

Market share available

for the rest of the competitors were too

low