Tuesday, February 19, 2019
Coke vs Pepsi strategy Essay
vitamin C v. Pepsi 5 Forces AnalysisIndustry concentrate producesHigh tawdriness (depends on price/advertising cost/ high number of substitutes(low kilogram calorie pledges/no carb drinks/ not carbonated drinks want orange juice) Pepsi products /Coke products cutting Entrants (barriers/rivalry)High Intensity-Brand recognition dominant market/ patents on style and colorize Network relationships & high cost of entryestablished such as statistical distribution, warehouse, bottlers, and shelf-location high marketing costsCoke dominance on foreign market makes it hard for Pepsi to enter international markets where Coke is dominant (Mexico) Suppliers (Bargaining great power of Supplier)Medium intensity- Coke and Pepsi can and do renegotiate contracts with bottlers on prices, marketing, distribution territories, and etc. High intensity- for new entrants because the bottlers determine price of product (price takers), shelf- calculate is determined by retailer and less price discoun t control. on that point is a small number of important suppliers since Coke and Pepsi supported suppliers to steal other smaller suppliers to keep up with their needs. Buyers (Bargaining Power of Buyers)High Intensity- out-of-pocket to the high number of substitutes, health concerns, and few key buyers (fountain outlets/vending machines) E.g.) Coke and Pepsi battled for the right to sign a contract with fast food restaurants like Burger King. Substitutes ( threat of substitutes)Medium Intensity- high number of substitutes(low calorie drinks/no carb drinks/ not carbonated drinks like Orange juice /ice tea/ flavored water system/etc.Low intensity competition among other pop drink because its based on brand recognition.