startegic planning of coca cola
The market in which the Cola companies (i. ... mainly Coke and Pepsi) compete is the Concentrate Production for the Cola soft beverage product category. These companies are responsible for the blending process of the core components, required for the production of the Cola beverage. The concentrate they produce is the main factor that determines the taste and flavor of the Cola beverage. ... Some analysts define 3 major sub markets in the Cola market: Suppliers, CPs/Bottlers and Distributors. We’ll use the Porter’s 5 Forces model in order to analyze the Cola CP market: F1: Rivalry Among Existing Firms Coke and Pepsi, who hold more than 70% of the market share, dominate the CP market place worldwide. ... Competition in the low-end Cola beverages is possible but with very low profit margins, but in any case this doesn’t posses a threat neither to Pepsi nor to Coke. F3: Threats of substitutes In the low term the threat of substitutes is rather low as the population worldwide have been used to drink the Cola beverage and in large amount. ... In the long term indirect factors such as health related issues might affect the overall Cola consumption but with no differentiation to specific brand name. ... people might perform transition over the years to natural juices rather than Cola beverages. ... F4: Supplier Power The Suppliers for the Cola market suffer from commodity market symptoms. ... Their power is very low because of two main reasons: Negotiation power is low as there are only two companies, which provide profitable Cola concentrate. ... The diagram below summarizes the Cola’s CP industry according to the Porter 5 forces model as viewed by Coke and Pepsi: Answer 2 : ‘Industry profitability and the VA chain’ The cola industry consists of 3 major participants as described in answer no 1: § CPs § Bottlers § Distributors Each of these participants represents a stage in the VA chain, whereas the chain includes other activities and bodies as well. ... 9% in 1993 and the Cola drinks share of the soft drink market only increased as well. ... Answer 3 : ‘Strategic Plan’ A strategic plan for Coca Cola: Coca Cola should concentrate its efforts on 3 major planes: 1.