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FORCE MAGNITUDE JUSTIFICATION

Level of Rivalry High/ Strong - Coca Cola and Pepsi are the two largest and major
concentrate producers in the Cola Industry.
- Shelf space of small concentrate producers declined
because of the two giant concentrate producers. This
resulted to the transfer of these small producers from
one owner to another.
Power of Buyer High / Strong - Depicted by the increasing availability and variety of
CSDs and non-carbonated drinks.
- Declining prices and sales, discounts, and promos.
Potential toa hi Entry Weak/Low - Both Coca Cola and Pepsi franchise their own bottlers.
- Both companies have variety of products and
alternatives, aside from their flagship CSDs, to meet
demand of buyers.
- Both invested well in bottlers for advertising and
marketing.
- Each companys major bottlers fight for shelf space to
ensure visibility oheir products.
- Both have established brand image which are already
tried and tested by the consumers
Power of Supplier Weak/ Low - Theres a high level of rivalry among the suppliers to the
(supplier of two giant concentrate producers, in turn, resulting to
sweeteners, their need to adjust prices and deals in order to obtain
flavouring, packaging, the contract.
etc.)
Power of Supplier High/Strong - Pepsi and Coca Cola has a high power as a supplier since
(Concentrate their brand image are already very familiar with the
Producer) consumer.
Substitute Products Very High/ - Consumers have been conscious of their health.
Very Strong - Theres a wide variety of substitute products from
bottled water to juices, coffee, tea, powdered drinks, etc.