When You Think Of The Beverage Industry, There Are Several

1661 WordsApr 27, 20177 Pages
When you think of the beverage industry, there are several brands that come to mind, but one particular brand has developed a reputation for being the most iconic soft drinks in the world. Coca-Cola is a unique brand that has continued to spread its global image to consumers across the world. One way we as consumers can analyze, understand, and influence the effects of the Coca-Cola brand is by using the powers of Michael Porter’s five forces. Each force plays a vital role showing the ways the business deals with new entrants, suppliers, customers, substitutes, and rivals. In addition to the powerful effects of Michael Porter’s five forces, we are also able to analyze a business’s positioning strategies such as their strengths, weaknesses,…show more content…
With over 250 bottling partners and 900 plants across the world, Coca-Cola has a low-pressure rating for any new entrants because it has a tremendous revenue base as well as a global network that continues to increase at an alarming rate. While the force of any new entrants to the soft drink industry is important to note, Porter’s second force of suppliers can also have an extreme influence on a powerful brand such as Coca-Cola. The second force is the influence of suppliers in an industry. Valuation Academy states, “The more powerful a seller is relative to the buyer, the more influence the seller has.” In terms of big industry such as Coca-Cola, the influence of suppliers has a very low effect on competitiveness, since Coca-Cola is likely the suppliers’ biggest customer. Also, coca cola is known for their supplier diversity, to provide opportunities for minority and women-owned businesses, Jane Nelson, the director of corporate social responsibility, states in a video, “Their vision is to provide economic empowerment and opportunity for 5 million women by 2020” (Making a Sustainable Difference, 2013). Although honorable, this program takes power away from the suppliers, because of the available alternatives, meaning the supplier 's minimal effect on competitiveness will likely remain the same in the future. In contrast, main ingredients,
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