Concentrate producers – this component of the CSD industry has a low bargaining power. This is so because the raw materials that are used are easily available and therefore entry into the market in this aspect is easy. However Coca Cola has a very specific formula for mixing of the elements to make the concentrate and therefore not every firm that wishes to become a supplier for Coke can become one.
On the other hand Coke enjoys an upper hand and as a buyer the company can switch to any other supplier at relatively low costs. The costs of selection another supplier is low and therefore the company enjoys buyer power.
Moreover, since it is easy to gain access to all the ingredients that are required for making of the concentrated liquids for CSD is relatively easy, there are enough suppliers or replacements of existing suppliers. Hence the company has a number of options to replace an existing supplier with a new one. Therefore Coke can choose suppliers based on need and costs (Carpenter & Sanders, 2014).
Since there are a number of such suppliers ready to tie the knot with the world leader in CSD, therefore there is significant rivalry between them. There is also no threat of substitute products as far as suppliers of concentrate are concerned. This is so because, the concentrate uses a very specific formula that create the taste of Coke soft drinks. Hence this cannot be replaced by anyone and everyone....
... middle of paper ...
...ver since the entry barriers are low and threat from new entrants are high, there is usually severe competition among the retailers. The supplier for retailers is Coca Cola which has a low bargain power.
As is evident from the above analysis that Coca Cola is well placed as a company with both the concentrate makers and the bottlers with a lot of options to leverage in their dealings with these two components of the. But the company is at a disadvantage with regards to the retailers.
Gaining leverage greater dealing ability with retailers can be tough for Coca Cola. However a certain degree of leverage can be gained by way of better incentivizing the retailers to encourage excusive sale of the company products and refraining from selling of products from rival companies.
Coca Cola can also look to set up alternative sale channels such as exclusive stores.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Issue Identification The Coca-Cola Company is currently in a strong competitive position in comparison to its rival companies, dominating the carbonated soft drink market with a market share of 48.6 percent in 2015 according to Bloomberg. It is true that the firm’s annual report on Form 10-K shows a decrease of 4% in net operating revenues from 2014 to 2015 but the company still appears to be in a sound financial position with at 2% increase in volume of its beverage products, favorable product mixes in emerging markets, and a foreseeable increase in revenue from investments and recent acquisitions.... [tags: Soft drink, Marketing, Coca-Cola, Revenue]
847 words (2.4 pages)
- Analysis of the Coca Cola Company History "Coca-Cola enterprises Incorporated, employees 66,199 operates, 444 facilities, 47,235 vehicles, 1.9 million pieces of cold drink equipment and sold 3.8billion unit cases in 46 states in the united states, all 10 provinces of Canada and portions of Europe including Belgium, France, Great Britain, Luxembourg and the Netherlands" (Coca-Cola facts 99). An, Atlanta Pharmacist Dr. John Slyth Pemberton founded Coca-Cola on May 8, 1886. The carmel colored ingredients, Coca leaves and kola nuts.... [tags: Businesses Coca Cola Marketing Essays]
4605 words (13.2 pages)
- The New Coke 1. Introduction Coke was invented by Dr. John Pemberton, an Atlanta pharmacist and his three-legged brass pot all the way back in 1886; by 1985 Coke was closing in fast on its centennial anniversary. (Cook, 2002) Coke along with the legendary chairman Roberto C. Goizueta had witnessed a remarkable set of accomplishments during the 1980's. There were some creeping problems, however. The 87-year old rivalry between Coca-Cola, the traditional market leader, and Pepsi Cola, the perennial runner up, took an unexpected turn in the mid-1970s.... [tags: Coca Cola Business Analysis Marketing]
1840 words (5.3 pages)
- Coca Cola is a soft drink that was invented in 1886. In 1916, the Coca Cola Company began manufacturing of its most famous bottle. In 1928, the company’s president led an expansion plan of Coke overseas when he introduced the soft drink to the Olympic games. In the 1960s, the company expanded with the introduction of new flavors, while in the 1980s, Coca Cola focused on innovation and change. As the company’s presence grew globally, Coca Cola found a home in countries around the world. South Africa not only is Africa’s biggest economy, coke is South Africa’s most admired brand name.... [tags: business analysis, soft drink industries]
562 words (1.6 pages)
- The Coca-Cola Company is one biggest enterprise that people across a global is lots of consumed and recognized. Also, the company has organized structure of itself in terms of reflecting on the particular requirement of local market sensitively. (Coca Cola company Case study). In this essay will analysis achieving of company strategy and consider about responsiveness of product to customers. Responsiveness, however, have to consider the international business strategy that to be suitable with regional and analysis their supply chain through cost and efficiency trade-off.... [tags: Coca-Cola, The Coca-Cola Company, Diet Coke]
708 words (2 pages)
- Coca-Cola had emerged from a period of turmoil in 2005, sales were falling and there was limited synergy across international marketing efforts for the brand, which lead to inefficient usage of their resources and media budget. To correct this, a new leadership team was instilled with a renewed focus on strategized global marketing efforts and content creation. Specifically, a new team would be created out of the corporate headquarters in Atlanta to create synergy between the global and local positioning of the Coke brand by creating and locating content marketing campaigns that had potential global appeal.... [tags: Advertising, Coca-Cola, Carbonation, Marketing]
1059 words (3 pages)
- There is a man running on a desert road. While running, a little green bug representing his thirst starts reminding him that he is thirsty and tired, and that there is nothing around there that can relieve him from that. But some steps ahead the man finds a Coca-Cola dispenser, where he takes one out, quenches his thirst, and the little “thirst bug” evaporates. This is one of many commercials presented by the Coca-Cola Company in order to convince the public of how good and refreshing this drink is.... [tags: Coca cola coke Business Analysis marketing]
1436 words (4.1 pages)
- The two companies in the same industry used for this assignment will be Coca-Cola and Pepsi-Cola. These companies are similar because they are in the beverage industry. They were both established in the 1800’s and to this day are expanding more and more. This report will examine the financial analysis of each company as well as different business aspects that they convey such as type of business ownership, how economics affects business, the role of the government in business, leadership styles, motivating employees and promotional and marketing strategies.... [tags: Coca-Cola, Cola, The Coca-Cola Company, Diet Coke]
1567 words (4.5 pages)
- The Coca-Cola Company The Coca-Cola Company is the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. Coca-Cola's headquarters are in Atlanta, Georgia, in the United States of America. It is best known for its flagship product, Coca-Cola. The Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold a Coca-Cola franchise. Coca-Cola bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners.... [tags: Business Analysis Marketing Strategy]
968 words (2.8 pages)
- Case Analysis of Coca Cola 1. In the 1980s, under CEO Roberto Goizueta, Coca-Cola was a global brand with a growing presence in global-emerging markets like Europe, Russia, and South East Asia. It beat back its main rival Pepsi to be a leader in the carbonated beverage market with a 70% market share. During the 1990s however, under new CEO M. Douglas Ivester, the company’s market share started declining due to political (regulatory), economic, social (consumer), and technological (operations) challenges in the marketplace.... [tags: Business Analysis Coke Coca Cola]
1830 words (5.2 pages)
- The On The Development Of Underdevelopment
- The Ethics Of Internal Affairs Investigation
- The Role Of Accounting And Finance Career Fields
- Becoming A Pediatric Nurse Is A Challenging Career Path Of Studying
- How Social Media Has Changed Our Lives
- Physical Training, Ergonomics And Cognitive Behavioral Training