Applying Porter's Five Force Model to Coke and Pepsi (Essay Sample)

Apply porter’s five force model to coke and Pepsi case study
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Porters five force model to coke and Pepsi case study?
* Concentrate manufacturing.
* Barriers to entry.
These new entrants bring new products and resources to the market, creating competition with the existing industries. The barrier to entry may include
* Economies of scale where the higher the company's lowest effective scale, the greater the entry barriers.
* Conversion cost is the amount more than what the customer will pay to change the supplier of a particular product.
* The technical obstacle entails the change in technology over some time.
* They are targeting the products and services required by the target market.
* Control of sales channel which includes the company brands, partnership which is good and the distribution channels.
* Government policies towards the company, for example, offering of finances to the company.
* Substitution
Here, the companies must increase the quality of the product produced or lower the cost of the products. Increasing the profitability may be limited because some of the raw materials like water are free. Thus, to maximize their profits, they have to increase the quality of their product.
* Suppliers
The suppliers have real power because they supply the raw materials to the companies that are already stable and have a readily available market for their product and adds some additional costs to the products' production process.
* Buyers
The buyers mainly influence the profitability of the companies as they advise the company about their products. They advise them by telling them to increase their product quality if it is of low quality and price fluctuations whereby they may complain if the company raises the price of its products and ensures their prices are standard. The companies' immediate buyers, let's say the retailers purchase the products and help in promotion. They sell the products to the final buyers, making the final buyer aware of the company and its