COMMERCE 4PA3 Chapter Notes - Chapter 1-3: Taco, Caffeine, Blind Taste Test
11 Sep 2017
School
Department
Course
Professor
Document Summary
Porters 5 forces, threat of new entrants (medium threat, relatively low barriers to enter since anyone can make soft drinks, of the other hand establishing a flavor and brand can be difficult as we see. Coca cola and pepsi control a large amount of the market concluding that consumers are loyal: coca-cola is seen not only as a beverage but also as a brand. It has held a very significant market share for a long time and loyal customers are not very likely to try a new brand. A lot of capital is needed to enter this industry because there are large capital costs for bottling and distribution: threat of substitute products (medium to high pressure) There are many kinds of energy drinks/soda/juice products in the market. Coca-cola doesn"t really have an entirely unique flavor. The leaders of the industry are coke, pepsi, cadbury schweppes with huge market shares.
