Explanation:
Porter's five-force model is a strategic tool used by organizations to conduct a competitive analysis that can determine a company's position in the market in which it operates. They are: 1- Rivalry between competitors; 2- Bargaining power of suppliers; 3- Bargaining power of customers; 4- Threat of new competitors;
5-Threat of new products or services.
Company chosen for analysis of the 5 forces: The Coca-Cola Company.
1- . Who are the current competitors?
- Pepsico; Dr Pepper Snapple; Red Bull.
2. Is there currently a threat of new entrants?? If so, where are they coming from?
To enter the business and compete directly in the giant coca-cola market requires a high cost of capital investment.
The biggest influence may be on companies that develop products on a regional scale.
3. Who are the main suppliers? If you cannot find them by name, what types of materials are supplied.
Coca-Cola operates on a unified purchasing structure, and there are over 32,000 suppliers registered as direct and indirect suppliers.
4. Who are the main buyers?
Coca-Cola sells its products worldwide, and is one of the best-selling products in the world, because soda is its main product, being a non-durable good is widely consumed by various types of audiences.
5. What might be considered a substitute product/service?
The taste of coke is very striking, so as much as there are similar products, coke has an easily identified taste that is easily recognized by consumers. Therefore it is easier to have substitute products in the company's by-products, such as juices and other sodas.
