Question

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents a substitute product in the soft drink industry? (A) Vitamin water, fruit juice, coffee are all beverage options available to consumers.(B) Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.(C) Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases. (D) Zevia Natural Diet Soda begins selling directly over the Internet.

Answer 1

Answer: Option (A) is correct.

Vitamin water, juice, coffee are other beverage options available to consumers are the one that can represent substitute products in the soft drink industry.

The five forces can be referred to as a model for business analysis that helps to elaborate on why different industries in a certain market are able to endure different levels of profitability. These forces are often used to evaluate competition depth, appeal, and profitability of the market.