Group Member

 Anurag Barua
 Dibyendu Dey
 Chandan Verma
 Jashwant Prasad Singh
 Ritwik Borthakur
Five Forces of Porter
Introduction
 Coca-Cola is a carbonated soft drink sold in stores,
restaurants, and vending machines in more than 200
countries.
 It is produced by The Coca-Cola Company of Atlanta,
Georgia, and is often referred to simply as Coke (a
registered trademark of The Coca-Cola Company in
the United States since March 27, 1944).
Threat of New Entrants/Potential
Competitors

 Entry barriers are relatively low for beverage industry:

there is almost 0 consumer switching cost and very low
capital requirement. There are more and more new
brands appearing in the market with usually lower
price than Coke products
 However Coca-Cola is seen not only as a beverage but
also as a brand. It has a very significant market share
for a long time and loyal customers are not very likely
to try a new brand beverage.
Threat of Substitute Products
 There are many kinds of energy drink and soda
products in the market. Coca-cola doesn’t really have a
special flavor. In a blind taste test, people couldn’t tell
the difference between Coca-Cola coke and Pepsi coke
The Bargaining Power of Buyers
 The individual buyer has little to no pressure on Coca-Cola
 The main competitor, Pepsi is priced almost the same as
Coca-Cola.
 Consumer could buy those new and less popular beverages
with lower price but the flavor is different and the quality is
not guaranteed.
 Large retailers, like Wal-Mart, have bargaining power
because of the large order quantity, but the bargaining
power is lessened because of the end consumer brand
loyalty.
.
The Bargaining Power of Buyers
 There are many kinds of energy drink and soda
products in the market. Coca-cola doesn’t really have a
special flavor. In a blind taste test, people couldn’t tell
the difference between Coca-Cola coke and Pepsi coke.
 People are getting concerns of negative effects of
carbonated beverages. Increasing number of
consumers begin to drink fruit juice, lemonade and tea
instead of soda products
The Bargaining Power of Suppliers
 The main ingredients for soft drink include
carbonated water, phosphoric acid, sweetener, and
caffeine. The suppliers are not concentrated or
differentiated.
 Any supplier would not want to lose a huge customer
like Coca-Cola.
Rivalry Among Existing Firms
 Currently, the main competitor is Pepsi which also has a
wide range of beverage products under its brand. Both
Coca-Cola and Pepsi are the predominant carbonated
beverages and commit heavily to sponsoring outdoor
festivals and activities. As Coca-Cola has a longer history, it
is advertised in a more classical approach while Pepsi tried
to attract younger generation by using pop stars as brand
ambassadors. Currently Coca-Cola slightly topped Pepsi as
the possessor of the most U.S market share.
 There are other soda brands in the market that become
popular, like Dr. Pepper, because of their unique flavors.
Thank You