Sse Colawars Group11
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Transcript of Sse Colawars Group11
Cola Wars Continue
Fredric AxelssonChris GruberMarcus HolstEleni Miliou
Concentrate Industry
Medium: bottlers have a big variety of choices of beveragesHigh: for end consumers there exists wide variety of soft drinks (indirect substitutes)
Intensity ofCompetitive
Rivalry
Bargaining Power of Suppliers
Bargaining Power of Customers
Threat of New MarketEntrants
Threat of Substitute Products
Concentrates
Low: high investment intensity required to build brands, stagnating market with already established positionings and shares
Intensity ofCompetitive
Rivalry
Bargaining Power of Suppliers
Bargaining Power of Customers
Threat of Substitute Products
Threat of New MarketEntrants
Concentrates
Low: for bottlers the sustainable business volume originates from a few selected big concentrate producersEnd-consumers too fragmented to make any demands, even though they have a freedom of choice
Intensity ofCompetitive
Rivalry
Bargaining Power of Suppliers
Bargaining Power of Customers
Threat of New MarketEntrants
Threat of Substitute Products
Concentrates
Low: main ingredients are usually commodities publicly traded
Intensity ofCompetitive
Rivalry
Bargaining Power of Suppliers
Bargaining Power of Customers
Threat of New MarketEntrants
Threat of Substitute Products
Concentrates
High: settled market with slow growth, practical duopoly, competitors practically serving the same customer needThough: competition is not evolving around priceIntensity of
CompetitiveRivalry
Bargaining Power of Suppliers
Bargaining Power of Customers
Threat of New MarketEntrants
Threat of Substitute Products
Concentrates
Bottling Industry
High: in the context of restaurants and diners, fountains pose a major threatLow: retail stores have no other way to offer packaged goods
Intensity ofCompetitive
Rivalry
Bargaining Power of Suppliers
Bargaining Power of Customers
Threat of New MarketEntrants
Threat of Substitute Products
Bottlers
Low: high initial capital expenditure for plants; few firms serving the big clients with exclusive contracts
Intensity ofCompetitive
Rivalry
Bargaining Power of Suppliers
Bargaining Power of Customers
Threat of Substitute Products
Threat of New MarketEntrants
Bottlers
High: retailers and restaurant chains maintain a position of powerLow: individual end-consumers have no particular negotiation power
Intensity ofCompetitive
Rivalry
Bargaining Power of Suppliers
Bargaining Power of Customers
Threat of New MarketEntrants
Threat of Substitute Products
Bottlers
Low: ingredients (e.g. high fructose corn syrup) are considered commodities; big concentrate producers help in negotiating agreements
Intensity ofCompetitive
Rivalry
Bargaining Power of Suppliers
Bargaining Power of Customers
Threat of New MarketEntrants
Threat of Substitute Products
Bottlers
High: product is identical for every bottler, companies have to compete on prices and gain a deal with a somehow larger concentrate manufacturer
Intensity ofCompetitive
Rivalry
Bargaining Power of Suppliers
Bargaining Power of Customers
Threat of New MarketEntrants
Threat of Substitute Products
Bottlers
Future challenges
Political
Economic
Sociocultural
Technological
Taxes and regulations regarding health issuesMonopoly issues
Developing countries boost demand, e.g. BRICWorsened financing situation
Coke as a symbol of the American cultureHealthy substitutes become more attractiveAnti-globalization and environmental movement
No major prediction possible
