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Market TargetingPorters Five ForcesIn Action: SampleAnalysis of Coca-

Cola

hapter

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Coca-Cola

Since its intro%&ction in #,,' Michael PortersFive Forces has )ecome the %e factoframe.ork for in%&stry analysis( The /veforces meas&re the competitiveness of the

market %eriving its attractiveness( Thefollo.ing is a Five Forces analysis of The Coca-Cola Company in relationship to its Coca-Cola)ran%(

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$ntry )arriers are relativelylo. for the )everage in%&stry:there is no cons&mers.itching cost an% 1ero

capital re2&irement( There isan increasing amo&nt of ne.)ran%s appearing in themarket .ith similar prices

than Coke pro%&cts Coca-Cola is seen not only as

a )everage )&t also as a)ran%( It has hel% a very

signi/cant market share for a

Threat of 3e. $ntrants4PotentialCompetitors

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Threat of S&)stit&te Pro%&cts

There are many kin%s of energy %rinks4so%a46&ice pro%&cts in the market(Coca-Cola %oesnt really have anentirely &ni2&e 8avor( In a )lin% taste

test' people cant tell the %i9erence)e

t.een Coca-Cola an% Pepsi(

Me%i&m To *igh Press&reMe%i&m To *igh Press&re

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The ;argaining Po.er of ;&yers

The in%ivi%&al )&yer no press&re onCoca-Cola

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The ;argaining Po.er of S&ppliers

The main ingre%ients for soft %rinkincl&%e car)onate% .ater' phosphoricaci%' s.eetener' an% ca9eine( Thes&ppliers are not concentrate% or

%i9erentiate%( Coca-Cola is likely a large' or the

largest c&stomer of any of theses&ppliers(

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>ivalry Among $?isting Firms

C&rrently' the main competitor is Pepsi.hich also has a .i%e range of )everagepro%&cts &n%er its )ran%( ;oth Coca-Colaan% Pepsi are the pre%ominant car)onate%

)everages an% committe% heavily tosponsoring o&t%oor events an% activities(

There are other so%a )ran%s in the marketthat )ecome pop&lar' like @r( Pepper'

)eca&se of their &ni2&e 8avors( These other)ran%s have faile% to reach the s&ccess thatPepsi or Coke have en6oye%(

*igh Press&re*igh Press&re