This document discusses the cola wars between Coca-Cola and Pepsi and analyzes the major participants in the concentrate and bottling industries using Porter's Five Forces model. It identifies the key players as concentrate producers, bottlers, retailers, and suppliers. It then analyzes the industries using the five forces of supplier power, threat of entry, industry rivalry, substitute competition, and buyer power. Finally, it compares the economics and attractiveness of concentrate producers versus bottlers and discusses challenges facing the cola industry's repositioning.

1. Case 1 Cola Wars ContinueGroup 4Erika Brag (20200) Anna Ohlsson (20313) Xin Guo (70397) Liang Wang (70404)

2. Major Participants involved the production and distribution of CSDsConcentrate producersBottlersRetailer channelsSuppliers2

3. Concentrate IndustryDependent on:Technology: R&D for soft drinks recipesBuyers: customer base, retailers, distributorsGeographic location of production, outsourcing.Local distribution channels3http://www.youtube.com/watch?v=muH-zcOYnFc

4. Porter’s Five Forces (I)SUPPLIER POWERSuppliers of ingredients / raw material

5. Not very high supplier power

6. Suppliers’ price sensitivity

7. Relative bargaining powerTHREAT OF ENTRYCSD market

8. More profitable to produce CSDs other than cola

9. Time and capital requirements for building of brand image / recognition /Customer loyalties