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Cola Wars Links

The cola industry has historically been very profitable due to low barriers to entry. Starting a cola company requires hundreds of millions of dollars. Regulations and licensing restrict new competitors, while distribution channels are difficult to build. Supplier bargaining power is low since there are many suppliers and switching between them is easy. Buyer power is also low due to franchising, territories, and pouring rights. Rivalry between major players is competitive but low-intensity. The main threat is substitute beverages, increasing focus on health and wellness. Advertising and brand loyalty have allowed major players to thrive despite stagnant industry growth from these trends.

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54 views1 page

Cola Wars Links

The cola industry has historically been very profitable due to low barriers to entry. Starting a cola company requires hundreds of millions of dollars. Regulations and licensing restrict new competitors, while distribution channels are difficult to build. Supplier bargaining power is low since there are many suppliers and switching between them is easy. Buyer power is also low due to franchising, territories, and pouring rights. Rivalry between major players is competitive but low-intensity. The main threat is substitute beverages, increasing focus on health and wellness. Advertising and brand loyalty have allowed major players to thrive despite stagnant industry growth from these trends.

Uploaded by

thecoolguy96
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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https://www.slideshare.

net/unitedworldmba/cola-wars-37275600

https://www.slideshare.net/sharonsherryz/cola-wars-44174752

The CSD Industry has historically been so profitable because threat of new entrants is low. Start-up
costs are hundreds of millions of dollars. Federal regulations and licensing restrict new players, and
distribution channels are difficult to establish. Bargaining power of suppliers are low because there
are plenty of them making switching between them easy and cheap. Bargaining power of buyers is
also low due to franchising agreements, territory barriers and pouring rights. Intensity of rivalry is
also low even though it’s very competitive between the top players. The only downfall to this
industry is the threat of substitutes which has illuminated the importance of health and fitness. The
growth of this industry has been stagnant because of these new trends. However, advertising
campaigns and brand loyalty have caused the main players to thrive.

https://www.slideshare.net/hyejoolee9083/cola-wars-continue-coke-and-pepsi-in-20061

https://www.slideshare.net/Subedisulav/cola-war-continues-coke-and-pepsi-21st-century-and-
battle-for-internationalizing-the-cola-wars-b-india

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