Porters
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Coca-Cola and Pepsi dominate the soft drink market through various customers such as fast food chains and stores, strong brand recognition that counters substitutes like water and juice, and established relationships with bottlers that make market entry difficult for new companies. The few key suppliers of ingredients have little influence due to the common nature of items like sugar and carbonation. The soft drink industry operates as a duopoly with Coca-Cola and Pepsi as the dominant rivals.
Porters
- 2. Soft Drink (Coke Vs Pepsi)The CustomersMany different companies buy soft drink products. - fast food franchises, food stores, convenience stores, and vending.
- 3. The Substitutes beer, water, coffee, and juices.Coca-Cola and Pepsi were able to counter these substitutes-brand equity , advertising, easily available to the consumer. Â
- 4. New Market EntranceBoth Coke and Pepsi have franchising agreements with existing bottling companies.Coke and Pepsi have also been able to develop loyal customers through their brand image This makes it very hard for a new soft drink company to find a bottler willing to distribute their product.Â
- 5. Supplier The suppliers of these products have little influence on these ingredients due to them being common.easy for a new soft drink company to find a supplier willing to sell these ingredients to them.
- 6. RivalryThe soft drink industry can be described as a Duopoly since Pepsi and Coke are the two firms competing with other soft drink company