Please paraphrase this file very well. Also, fix everything that has RED writing, and put in mind for the 1st question its talking about Cola Wars and the second is about True Religion which is a denim company) Q1. A. The industry in this case is the carbonated soft drink industry. (Porters 5Forces) I. Threat of New Entry: The threat of any new entry would be reduced by such a vertical integration and consolidation. This is because of the fact that the industry is already dominated by the merged companies and Coca Cola and Pepsi. This is supported by the brand loyalty that the major players already have. They also have absolute cost advantage as compared to any potential new entrants. (Is there any government regulation) II. Suppliers Power: In the carbonated soft drink industry, the suppliers are the people or companies that provided the concentrate producers with the caramel coloring, caffeine, natural flavors, and phosphoric or citric acid. They also offered the bottlers sweeteners and packaging. After the vertical integration and consolidation of the bottlers and the concentrate producers, the suppliers would have an increase in bargaining power. This is because of the increase of demand coming from the consolidated organization. III. Buyers Power: Buyers will have more power because of the consolidation of the concentrate producers and bottlers. This is because of the availability of more retailers to sell to the end consumers. As a result, there would be a larger choice the end costumer can buy from. IV. Threat of Substitution: The substitute will continue to be the same with the vertical integration and consolidation of the bottlers and concentrate producers. Examples of these substitutes are water, coffee, juice, peer etc. (Give example of substitute) V. Competitive Rivalry: Consolidation and vertical integration will reduce rivalry. This is because of the decrease in the fixed costs of the company. In addition, the bigger company will be strengthened as buyers lose the ability to buy from smaller companies. (Intensity of rivalry_ Do the firms compete on price) B. i. Complementors: it means there is other products not substitute and increase the utility of the firm product. This happened a lot in the tech industry. Second, industry life cycle analysis. ii. Industry life cycle analysis: the model is not capable to adapt. The model just makes a presentation of the current time. It might be not able to reflect well within the long term. For example, in certain life the firm might have a high competition. iii. Macroenvinroment: It is about factors that might affect the company’s ability to serve. First, global forces, For example, China is emerging market for the horse industry. Second, Political and legal forces. For example, the closure of horse slaughter in Canada, US and other countries. Third, Social forces. For example, people concern about horse slaughter. Fourth, demographic forces. For example, the movement from rural .

1. Please paraphrase this file very well. Also, fix everything that
has RED writing, and put in mind for the 1st question its talking
about Cola Wars and the second is about True Religion which is
a denim company)
Q1.
A. The industry in this case is the carbonated soft drink
industry. (Porters 5Forces)
I. Threat of New Entry: The threat of any new entry would be
reduced by such a vertical integration and consolidation. This is
because of the fact that the industry is already dominated by the
merged companies and Coca Cola and Pepsi. This is supported
by the brand loyalty that the major players already have. They
also have absolute cost advantage as compared to any potential
new entrants. (Is there any government regulation)
II. Suppliers Power: In the carbonated soft drink industry, the
suppliers are the people or companies that provided the
concentrate producers with the caramel coloring, caffeine,
natural flavors, and phosphoric or citric acid. They also offered
the bottlers sweeteners and packaging. After the vertical
integration and consolidation of the bottlers and the concentrate
producers, the suppliers would have an increase in bargaining
power. This is because of the increase of demand coming from
the consolidated organization.
III. Buyers Power: Buyers will have more power because of the
consolidation of the concentrate producers and bottlers. This is
because of the availability of more retailers to sell to the end
consumers. As a result, there would be a larger choice the end
costumer can buy from.

2. IV. Threat of Substitution: The substitute will continue to be
the same with the vertical integration and consolidation of the
bottlers and concentrate producers. Examples of these
substitutes are water, coffee, juice, peer etc.
(Give example of substitute)
V. Competitive Rivalry: Consolidation and vertical integration
will reduce rivalry. This is because of the decrease in the fixed
costs of the company. In addition, the bigger company will be
strengthened as buyers lose the ability to buy from smaller
companies. (Intensity of rivalry_ Do the firms compete on
price)
B.
i. Complementors: it means there is other products not
substitute and increase the utility of the firm product. This
happened a lot in the tech industry. Second, industry life cycle
analysis.
ii. Industry life cycle analysis: the model is not capable to
adapt. The model just makes a presentation of the current time.
It might be not able to reflect well within the long term. For
example, in certain life the firm might have a high competition.
iii. Macroenvinroment: It is about factors that might affect the
company’s ability to serve. First, global forces, For example,
China is emerging market for the horse industry. Second,
Political and legal forces. For example, the closure of horse
slaughter in Canada, US and other countries. Third, Social
forces. For example, people concern about horse slaughter.
Fourth, demographic forces. For example, the movement from
rural to urban environment. Fifth,Technological forces, For
example, Online gambling, TV and mobile. Finally,
Macroenvinroment forces. For example, 2008 recession.

3. iv. Firm distinctive competence: The model does not care about
the effect of a given business’s core competencies on its ability
to make profit. Rather, the model only assumes the structure of
the industry as the main factor that determines its profits. As a
result of that, this model is hard to apply to big companies that
have interactions that have been accomplished from a range of
businesses.
v. Uncertainty: there is uncertainty in the model. The
conclusions we get from the application of these forces are
often arguable. The problem with that any mistake with the
conclusion might result poor understanding of the industry.
C. Two of porter’s five forces that have changed
Two of porter’s five forces that have changed are the intensity
of rivalry among existing companies and the threat of subsidies.
These two can be used to talk
about the change in the preference of consumers towards
alternatives that are
healthier. First, increasing consumers’ consciousness has raised
the threat of
substitute. Consumer now worried about sugar and became more
into healthy
trends. For example, soda is losing popularity to healthier
options such as water
and juice. This has led to the rise of companies which provide a
healthier range
of product. It is also important to note that the substitutes as
well as the soft
drinks are usually stocked in supermarket shelves in equal
proportion. Second,
this is clear evidence of rivalry among existing companies.
These companies
have been forced to adapt to the demand by consumers for
healthier alternatives. This new environment has enabled

4. smaller companies to gain a
sizable portion of the market share. Bigger companies have been
forced to act
quickly and even purchase smaller companies in order to remain
relevant. Thus,
the industry has become very attractive for new entrants.
Q2.
A. Definition
It is the strength that enable the company to create competitive
advantages. It also allows a firm to differentiate itself from
competitor. That leads to better margin which makes the firm
outperform its competitors and attain sustainable competitive
advantage. It can be seen by doing internal analysis such as
using VRIO framework to know how unique is the firm’s
resources and capabilities.
Weaknesses
1- the companies always have many resources and capabilities.
There is a lot of work involved to figure out these recourses and
capabilities. It can be very time consuming and complicated
especially for beginners. (ignore the external environment)
2- Having a good logic is required to do the VRIO framework.
There are very few experts in VRIO who have a good logicabout
it. Most people are just familiar with the concept. This makes it
very difficult to carry out in an organization with non- experts.
If the person who doing it is not having a good logic, it means
the company will have a wrong assumption about how unique is
its resources and capabilities.
B.

5. The first resource is the good reputation. Levi’s has a good
reputation because it is the inventor of jeans which gave the
firm the first mover advantage. The second recourse is the
R&D. Levi’s has Curve ID system which help providing
jeans that are flatter for its female costumers.
It is worthy to apply VRIO and Value Chain Analysis in order
to find out if these two resources may be a source to sustained
competitive advantage. In regards to the VRIO framework. Both
of above resources are valuable because they both help the firm
to increase the price and decrease the cost. Also, they are rare
because it is hard for other firms to possess the same as these
resources. In addition, these resources are costly to imitate.
Competitors may require increased investments in order to meet
the standard that Levi’s has. Finally, the company’s leadership
helps to attain a good reputation and great R&D. Also, the
company has build its culture in a way that it is hard for other
firms to imitate.
(explain specifically what the cost is for competition by
mentioning the
competitor and the precise reason for the competitor)
In conclusion, these recourses are source of the firm’s
sustainable competitive advantage.
In regards to the Value Chain Analysis, here is a diagram to
describe it
(Compare Levi’s to rivalry such as TR)
The design is important for the firm and it provides a high value

6. firm’s costumers. However, it costs the firm a lot because the
firm needs to have good designers which is very expensive.
Also, the company cares about the manufacturing because the
firm wants to provide a high quality to its costumer. This costs
the company a lot because there are materials, such as cotton,
and high tech involved here. Furthermore, in general, they
company focus less on the other value chains and it costs the
firm less too.
C. ways in which Seven All Mankind may achieve sustainable
competitive advantage.
There are various ways in which Seven All Mankind may
achieve sustainable competitive advantage. The company should
ensure that it produces products that may be consumed by a
relatively larger market. This means that its products should be
able to attract all consumers through providing products with
fair prices. Further, the company should improve on its
consumer relations. For example, the company should provide a
website I which all consumer needs may be addressed.
Consumers usually have different forms of needs and responses
to the company’s products and services, which may be
significant in improving the company’s effectiveness. In regards
to products, they can come up with new product area. For
example, outwear on young. Also, knitwear or outwear with
denim. In addition, the firm can attract more costumers by
offering new lifestyle contemporary. Also, they can try to
continue sales through out season by trading on season that out
of slow into bestseller. In regards to the consumers, the firm
can increase its staffing of Contemporary and also Denim. The
firm can also collaborate more by for example beauty or maybe
nail brand. Furthermore, the firm can provide visual drama more
to its costumers. (connect these reasons to the VRIO which are
Value, Rare, Inimitability, and Organized)

7. Q 3.
They are Logos, Ethos and Pathos.
1- Logos is about persuading the audiences by using logical
reasons. For example, the CEO provides some facts and
numbers to his audience.
2- Ethos is an appeal to ethic which means making the
audiences convince. For example, the CEO would show the
audience that he is worth to listen to.
3- Pathos is about the emotional appeal which means persuading
the audiences by attracting their emotions to appeal sympathy
from the audience. For example, the CEO use to make the
audiences feel what he wants him to feel.