Coca Cola Competitive Forces

Executive Summary

A soft drink, also referred to as soda, coke, pop, soda pop, or fizzy drink, is a non-alcoholic beverage that usually contains carbonated water, a sweetener, and flavoring. The sweetener is typically sugar, high-fructose corn syrup, or a sugar substitute. Soft drinks may also contain fruit juice or caffeine.
The Coca- Cola Company (KO) and PepsiCo, Inc. (PEP) are the main competitors of the non- alcoholic, carbonated soft drink industry. The other competitors are Dr. Pepper Snapple Group, Inc., Cott Corporation, etc.
This article is about the industry of the carbonated soft drinks, the market of the carbonated soft drinks, 5 competitive forces and the key success factors of the carbonated soft drinks sector.
The Industry

The individual consumer has no pressure on the Coca – Cola Company. Large retailers have bargaining power because they have large order quantities. However, general bargaining power is lessened because of the end consumer brand loyalty.
The Bargaining Power of Suppliers
The bargaining power of supplies have a low pressure on the Carbonated Soft Drinks Sector. The main ingredients for carbonated soft drink are carbonated water, sweetener, flavor phosphoric acid and caffeine. The suppliers are not differentiated. The Coca – Cola Company is the largest customer of the suppliers.
The Intensity of Rivalry
The intensity of rivalry among existing firms has a high pressure on the Carbonated Soft Drinks Sector. Currently, the main competitor for the Coca – Cola Company is the PepsiCo, Inc., which also has a wide range of beverages under its brand. Both of the companies are the leaders of the carbonated soft drinks industry and they compete in order to surpass. Both companies committed heavily to sponsoring outdoor events and activities in order to advertise their products or brands. Also, there are other soda brands in the market which became popular as they have unique flavors. For example, Dr. Pepper could succeed to emerge in the market with its unique taste. However, most of the brands cannot succeed to emerge in the market, because they have failed to provide to joy that The Coca – Cola

Each year, the company develops, tests and launches breakthrough packaging, equipment, merchandising, distribution models, and programs in order to improve and refresh both its business and the local communities. For example, The Coca – Cola Company brought music to deaf fans in Pakistan under their project of Coke Studio. Coke studio provides deaf music fans to feel and experience their countries biggest music platform. The company set up a special environment for deaf people in order to provide them to hear with tiny vibration engines and LED lights synched with music. Coca-Cola tested the innovation earlier this year in Bangkok. One of their listener told that “Whatever my body felt, whatever my brain thought, even though we can’t hear the music, we can feel it,”. (Staff, J., 2016). Based on the success of the test, Coca-Cola Pakistan decided to acquire the system for long-term use throughout the country. The general manager of the Coca – Cola Company in Pakistan added “Coca-Cola is an all-inclusive brand that revolves around bringing people together. It shrinks social barriers and encourages people to share their emotions and