Homework Question on On Market analysis of Coca Cola Company
- Assignments should be completed in Microsoft Word and files should be attached below. The target length of the assignment is one single-spaced (12-point font) page with normal margins.
- Identify a business in which you are interested. Describe the market conditions that the business faces using Porter’s 5 forces model. Then perform a SWOT analysis on the company.
Homework Answer on On Market analysis of Coca Cola Company
Level of rivalry: In soft drink industry, the level of rivalry is relatively low because only a few major companies compete in this industry. In fact, the company’s major competitor in the USA and other parts of the world is Pepsi and a few other companies that do not enjoy brand recognition (Smith 56). Accordingly, the level of rivalry in soft drink is not as high as it is in bottled water.
Power of customers: in soft drink industry, buyers do not have significant power to bring the products’ prices down, but Coca Cola Company is forced by the market forces to set the price of its products close to those of its competitors.
Power of suppliers: For Coca Cola Company, suppliers do not have this power because of two reasons. First, the company’s raw materials, which are water and sugar, are readily available. Second, there is a direct connection between the company and suppliers.
Threat of substitutes: the company’s products face the substitute threat because consumers can take tea, coffee, water, or juice among other drinks to quench their thirst. For this reason, the company faces the threat of substitutes.