Exhibit. Porter’s Five Forces
Industry Rivalry
-Coca Cola and Pepsi are market leader brands
_Diversity of Competitors
-Product differentiation
-Excess Capacity and Exit barriers
_Cost conditions for competition
Buyer Power
-Buyers’ price sensitivity
-Low price, Fast Decision making
_Large Customer Base
_Relative Bargaining Power
1. Since the rise in global concerns includes the disposal of plastic bottles, it is necessary to come up with a biodegradable product to package the CSDs in so it will be necessary to work on development of this product, and also a promotional plan.
Pepsi has been researching new ways to package and deliver new products to minimize the impact on the environment and reduce cost. They need to continue to strive for bio gradable bottles and cans in order to be one of the few companies that care about the environment while still meeting the value, cost and performance criteria expected from consumers and customers.
Coca-Cola has been conducting recycling in different countries according to their website their bottler in Western Europe, has begun a ground-breaking study with 20 households in Great Britain and France to observe at-home recycling behaviors over a six-month period. The goal of the study is to explore solutions that can influence and help increase at-home recycling rates. An initiative that it’s a good start but Coke needs to create Recycling and bio gradable products not only internationally but focus more in America to reach more consumers and have an impact in the world.
http://www.pepsico.com/Purpose/Environmental-Sustainability/Packaging-and-Waste
http://www.coca-colacompany.com/packaging-recycling