3. Concentrates Medium: bottlers have a big variety of choices of beverages High: for end consumers there exists wide variety of soft drinks (indirect substitutes) Bargaining Power of Suppliers Intensity of Competitive Rivalry Threat of Substitute Products Bargaining Power of Customers Threat of New Market Entrants
4. Concentrates Low: high investment intensity required to build brands, stagnating market with already established positionings and shares Bargaining Power of Suppliers Intensity of Competitive Rivalry Threat of Substitute Products Bargaining Power of Customers Threat of New Market Entrants
5. Concentrates Low: for bottlers the sustainable business volume originates from a few selected big concentrate producers End-consumers too fragmented to make any demands, even though they have a freedom of choice Bargaining Power of Suppliers Intensity of Competitive Rivalry Threat of Substitute Products Bargaining Power of Customers Threat of New Market Entrants
6. Concentrates Low: main ingredients are usually commodities publicly traded Bargaining Power of Suppliers Intensity of Competitive Rivalry Threat of Substitute Products Bargaining Power of Customers Threat of New Market Entrants
7. Concentrates High: settled market with slow growth, practical duopoly, competitors practically serving the same customer need Though: competition is not evolving around price Bargaining Power of Suppliers Intensity of Competitive Rivalry Threat of Substitute Products Bargaining Power of Customers Threat of New Market Entrants
9. Bottlers High: in the context of restaurants and diners, fountains pose a major threat Low: retail stores have no other way to offer packaged goods Bargaining Power of Suppliers Intensity of Competitive Rivalry Threat of Substitute Products Bargaining Power of Customers Threat of New Market Entrants
10. Bottlers Low: high initial capital expenditure for plants;few firms serving the big clients with exclusive contracts Bargaining Power of Suppliers Intensity of Competitive Rivalry Threat of Substitute Products Bargaining Power of Customers Threat of New Market Entrants
11. Bottlers High: retailers and restaurant chains maintain a position of power Low: individual end-consumers have no particular negotiation power Bargaining Power of Suppliers Intensity of Competitive Rivalry Threat of Substitute Products Bargaining Power of Customers Threat of New Market Entrants
12. Bottlers Low: ingredients (e.g. high fructose corn syrup) are considered commodities; big concentrate producers help in negotiating agreements Bargaining Power of Suppliers Intensity of Competitive Rivalry Threat of Substitute Products Bargaining Power of Customers Threat of New Market Entrants
13. Bottlers High: product is identical for every bottler, companies have to compete on prices and gain a deal with a somehow larger concentrate manufacturer Bargaining Power of Suppliers Intensity of Competitive Rivalry Threat of Substitute Products Bargaining Power of Customers Threat of New Market Entrants
14. Future challenges Political Economic Taxes and regulations regarding health issues Monopoly issues Sociocultural Developing countriesboostdemand, e.g. BRIC Worsened financing situation Technological Coke as a symbol of the American culture Healthy substitutes become more attractive Anti-globalization and environmental movement No major prediction possible
