Cola Wars

Threat of Entry of New Competition: Low.

The economy of scale within the CSD industry requires enormous amount of capitol to enter into this market, making this threat relatively insignificant.

- Threat of Substitutes: High.

Colas are now part of many different selections of drinks. Health and medical experts also contribute to this theat.

-Threat of Customer Buying Power: Medium.

It appears the customer base will buy soft drinks with expendable cash, but harsh economic times will force consumers to cheaper options.

-Threat of Suppliers' Bargaining Power: Low.

Concentrate providers are significantly tied into the success of this industry and has few outlets with the buying power of this industry.

Threat of Intense Rivals: Medium.

The 60 years of cola wars between Pepsi and Coke explicitly demonstrate a relatively two sided battle.

This industry is both profitable and attractive for CP's due to the simple and minimal ingredients...
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