Sse Cola Wars Group6
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Sse Cola Wars Group6

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Sse Cola Wars Group6 Presentation Transcript

  • 1. The Cola Wars Case Group 6 Magnus Hallberg, 20677 Marie Martinson, 20447 Alexej Cederholm, 70383 Michael Berman-Grutzky, 70384
  • 2. Outline • Executive Summary • The Competitive Five Forces – I. The concentrate business • The Competitive Five Forces – II. The bottling business • Conclusions • Sources
  • 3. Executive Summary • We have gone through a Five Forces analysis of the concentrate business and the bottling business. • Still big profit potential, but increasing threat from substitutes. • The concerns for the future are health and environment oriented, and respecting those fields will be the key to success.
  • 4. The Competitive Five Forces I. The concentrate business
  • 5. Buyers • Few alternatives • Price sensitive • Fragmented group The Competitive Five Forces – I. The concentrate business Group 6
  • 6. Suppliers • Not a major cost • Few inputs • Many suppliers The Competitive Five Forces – I. The concentrate business Group 6
  • 7. Potential Entrants • High capital requirements • Economies of scale • Unequal access to distribution channels The Competitive Five Forces – I. The concentrate business Group 6
  • 8. Rivalry among competitors • Fierce competition • Aggressive price competition • High fixed costs – high exit barriers The Competitive Five Forces – I. The concentrate business Group 6
  • 9. Substitutes • Health debate • Acquisitions • Total beverage companies • Soda Stream etc The Competitive Five Forces – I. The concentrate business Group 6
  • 10. The Competitive Five Forces – Summary I The Competitive Five Forces – I. The concentrate business Group 6
  • 11. The Competitive Five Forces II. The bottling business
  • 12. Buyers • Fragmented • Limited influence on product and price • Fountain customers powerful The Competitive Five Forces – II. The bottling business Group 6
  • 13. Suppliers Cans: • Large part of total cost • 2-3 suppliers compete for same contract Concentrate: • Vertically integrated or franchised • Switching cost high • Gets marketing help from concentrate business The Competitive Five Forces – II. The bottling business Group 6
  • 14. Potential Entrants • Capital intensive • Economies of scale • Customer switching costs low The Competitive Five Forces – II. The bottling business Group 6
  • 15. Substitutes • Alternative package solutions • Fountain at home • Soda Stream etc The Competitive Five Forces – II. The bottling business Group 6
  • 16. Rivalry among existing competitors • Soft Drink Interbrand Competition Act • Advertising high The Competitive Five Forces – II. The bottling business Group 6
  • 17. The Competitive Five Forces – Summary II The Competitive Five Forces – II. The bottling business Group 6
  • 18. Conclusion Still big profit potential, but there is an increasing threat from the substitutes.
  • 19. Concerns of the Future
  • 20. Health and Environmental Issues • Sugar/caffeine/taurine scepticism • Low calorie options demanded • Recycling Concerns of the Future Group 6
  • 21. Sources Articles Porter, M. (2008), The Five Competitors that Shape Competitive Strategy, Harvard Business Review, Jul- Aug 1998 Websites http://www.albany.edu/faculty/miesing/teaching/materi als/col wars.pdf http://www.slideshare.net/adhirock/cola-wars-case http://www.thecocacolacompany.com/presscenter/nr_2007 0905_ccna_support_recycling.html