Carbonated Soft Drink (CSD) - Five Forces Analysis

Carbonated Soft Drink (CSD) - Five Forces Analysis

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Intensity of Existing Rivalry

Relatively few competitors ( Carbonated Soft Drink (CSD)) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Large industry size ( Carbonated Soft Drink (CSD)) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

Diverse distribution channel ( Carbonated Soft Drink (CSD)) The more diverse distribution channels become the less bargaining power a single distributor will...
Critical production inputs are similar ( Carbonated Soft Drink (CSD)) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers ( Carbonated Soft Drink (CSD)) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Substitute is lower quality ( Carbonated Soft Drink (CSD)) A lower quality product means a customer is less likely to switch from ** Carbonated Soft Drink...
Substitute product is inferior ( Carbonated Soft Drink (CSD)) An inferior product means a customer is less likely to switch from ** Carbonated Soft Drink (CSD)**...

Bargaining Power of Customers

Large number of customers ( Carbonated Soft Drink (CSD)) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required ( Carbonated Soft Drink (CSD)) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements ( Carbonated Soft Drink (CSD)) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important ( Carbonated Soft Drink (CSD)) If strong brands are critical to compete, then new competitors will have to improve their brand...
Geographic factors limit competition ( Carbonated Soft Drink (CSD)) If existing competitors have the best geographical locations, new competitors will have a...
Entry barriers are high ( Carbonated Soft Drink (CSD)) When barriers are high, it is more difficult for new competitors to enter the market. High entry...
Customers are loyal to existing brands ( Carbonated Soft Drink (CSD)) It takes time and money to build a brand. When companies need to spend resources building a brand,...

What is Porter's Five Forces Analysis?

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