2012-2013 SSE InfoNet Data Product Roadmap SSE InfoNet 2012 / 5.
Sse cola_wars_6a_2011
-
Upload
erik-bergschoeld -
Category
Documents
-
view
306 -
download
3
description
Transcript of Sse cola_wars_6a_2011
By Tatjana Apanasevich, [email protected] Bergschöld, [email protected]
Jeanette Finder, [email protected] Perman, [email protected]
2304 Media Management
Threat of new entrants (rather high):•Low switching costs•Low investments•Few dominating players•Great recipy is needed
Rivalry among
concentrate producers:Very high
Power of the suppliers (low)•Generic products are easy to change. •Big players and suppliers dependence •Low switching costs
Threat of substitutes (high/medium):•Similar price and taste •High threat (switching costs for users is low)•Well known brand and status•Other beverages
Bargaining power of buyers (both low and high):•Fountains - high since they can integrate high volume, good substitutes. •Strong brand•Bottlers bargaining power is low.
Overall the market has potential of profitability, because:
barrier of entry is rather low initial investments there are many different suppliers to choose from hence
low supplier power low switching costs for end consumers people’s preferences are changing together with changing
trends, there are several ways to enter the market which might prove profitable for the new concentrate producer
there is high rivalry which means that it might be difficult to compete
Threat of new entrants (low):•Needs capital investments;•industry (high costs of entry)•Economies of scale •Contract with concentrate producer crucial
Rivalry among
bottlers:increasing
Power of the suppliers (high to low)•Dependence on concentrate producers (brands, prices..) and bottle producers (generic product)
Threat of substitutes (rather low)•Increased interest for fountains•New ways of consuming soft drinks, e.g. people can make it at home through soda stream
Bargaining power of buyers•Retailers: depends on what the brands, can be both high and low•End consumer: low bargaining power (because of small volumes)
gross profit is much higher for concentrate (83% compared to 35%) (concentrate industry is a more attractive market in terms of return)
the initial investment is lowerconcentrate market has a higher business
opportunity
Development in societyConcentrate: Health awareness increasing
(1) For bottlers: environmental factors and
recycling is becoming more central New distribution channels e.g. online shifting power structures - increasing power
of retailersmore international markets = a different way
of competing Information spread, e.g. contamination of
coke could have negative effects.more substitutes are entering the market -
increasing competition
decreasing margins more marketing costs keep up the competition, costly to
differentiate
Threat of new entrants – high•many new substitutes to soft drinks are entering the market •new ways of using soft drinks are emerging which often decrease the margins (such as soda-streamer).
Rivalry: high
Power of the suppliers (high to low)•increasing for retailers, more choices and more info for end consumers - increasing
Threat of substitutes (high)•plenty in varying forms and prices
Bargaining power of buyers•rather low, decreasing due to globalization)
Porter, ME, "What is Strategy"Porter, ME, “The Five Competitive Forces
that Shape Competitive Strategy”Case: Cola Wars Continue