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Coca-Cola Five Competitive Forces

Coca-Cola Five Competitive Forces

  • Submitted By: liutianxu
  • Date Submitted: 07/22/2010 4:13 PM
  • Category: English
  • Words: 594
  • Page: 3
  • Views: 1

Introduction

Coca-Cola Company Amatil (Aust.) Pty Ltd has a long history, since 1904 it named British Tobacco Company (Australia) Limited registered as an Australian public company. But while in 1964 they changed the structure of the company, establishment of Soft Drinks and started to be purchase of a controlling interest in Coca-Cola Bottlers (Perth) Pty Ltd. In 1977 the company changed its name to Amatil Limited and in 1989 company changed its name again as Coca-Cola Amatil Limited (CCA) and the Coca-Cola Company becomes CCA's major shareholder. Major corporate reorganized, sold the Company's tobacco subsidiary and made the core activities on beverages and snack foods (Coca-Cola Amatil(CCA) n.d). The company is very successful on non-alcoholic beverage, but it is not the only one it also has competitors.
Competitive Forces
There are five competitive forces models that Coca-Cola Company should faces. The force of traditional competitors is low because of few competitors with similar products and pricing structures (Laudon 2007). Such as just the Pepsi Company can compete with Coca-Cola Company on international marketing and in some areas have local companies compete with it. It is clearly, the traditional competitors for Coca-Cola Company are low (Brian 2009).
The force of new market entrants is low because of the barriers to entry are lower for Coca-Cola Company, that the products are sold in grocery with larger percentage and only Pepsi can bear comparison with (Laudon 2007). For example, in a local grocery stores, Coca-Cola and Pepsi’s products dominate the shelf space, there are just minimal space allocated to some other label drinks (Brian 2009).
The force of substitute products and services is high because Coca-Cola is sweetened carbonated beverages and today’s people become more health conscience many healthy drink like juice, energy drinks and bottled water can substitute it (Laudon 2007). Customers have more choices on drinking that is the risk...

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