The Threat of Current Competitor
Current competitor is Coca-cola. It is the biggest competitor of Pepsi. The
competition is strong.
The Threat of Substitution
The substitution is coffee, juice, mineral water. For certain market, the threat can be
low and also can be high. For child, they can not drink much coke, so the threat is
high. For young people, the threat is low. So the threat of substitution is fair.
The Threat of New Competitor
In China market, WangLaoji is a new competitor to Pepsi. The potential of new
competitor is high because Chinese love new products. And Wanglaoji has a good
market relationship. In recent years, people choose more healthy drink than soft drink.
So the threat of new competitor is high.
The soft drink industry need huge amounts of money to spend on the advertisement
and marketing. It’s hard for new competitor to struggle with the current market and
expand visibility. So the threat is low.
In general the threat is average.
The Threat of Supplier
The suppliers of these commodities have no bargaining power over the pricing due to
which the suppliers in soft drink industry are relatively weak.
Pepsi can get the raw material like sugar from many producers easily and have low
cost. The manufacture can easily shift towards the other suppliers.
And also the buyers pruchase large amount raw materials from thr supplier. This
encourages suppliers to remain in good contact with buyers.
So the threat is low.
The Bargaining Power of Customer
The bargaining power of customer is high because they perchase in bulks. The
vending machine provides product to customers in a straight line with enormously no
power with the buyer. The convenience has no bargaining power due to which it has
to pay superior price. Since the food store presents the best shelf space it demands low
price.
Average Threat
Strong Competition
Low Threat
SUPPLIER
 Sugar
 Flavor
 Color
 Packaging
Average Threat
NEW COMPETITOR
 WangLaoji
CURRENT COMPETITOR
 Coca-cola
SUBSTITUTION
 Tea
 Beer
 Coffee
 Juice
 Mineral water
CUSTOMER
 Fast food fountain,
 Vending,
 Convenience store,
 Food store,
 Restorant
High Bargaining Power