Coca-Cola FEMSA - Five Forces Analysis

Coca-Cola FEMSA - Five Forces Analysis

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Intensity of Existing Rivalry

Fast industry growth rate (Coca-Cola FEMSA ) When industries are growing revenue quickly, they are less likely to compete, because the total...
Low storage costs (Coca-Cola FEMSA ) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...

Bargaining Power of Suppliers

High competition among suppliers (Coca-Cola FEMSA ) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Low cost of switching suppliers (Coca-Cola FEMSA ) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...
Volume is critical to suppliers (Coca-Cola FEMSA ) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Critical production inputs are similar (Coca-Cola FEMSA ) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...

Threat of Substitutes

High cost of switching to substitutes (Coca-Cola FEMSA ) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

Product is important to customer (Coca-Cola FEMSA ) When customers cherish particular products they end up paying more for that one product. This...

Threat of New Competitors

Strong distribution network required (Coca-Cola FEMSA ) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Coca-Cola FEMSA ) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (Coca-Cola FEMSA ) If strong brands are critical to compete, then new competitors will have to improve their brand...
Industry requires economies of scale (Coca-Cola FEMSA ) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Advanced technologies are required (Coca-Cola FEMSA ) Advanced technologies make it difficult for new competitors to enter the market because they have to...

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