The document discusses the threat of substitutes and rivalry among existing competitors. It defines substitutes as alternative options that customers can purchase instead of a product. High threat of substitutes limits profitability and growth potential. Low threat of substitutes gives companies more control over the market. For Coca-Cola, major substitutes include Pepsi and other soft drinks. The document also discusses numerous competitors in the soft drink industry leading to intense price competition and low profitability due to high rivalry among Coca-Cola and Pepsi in particular.