Industry Analysis of the Softdrink Industry using Porter's 5-Forces Model

Industry Analysis Barriers to Entry. Processes involved in the manufacture of soft drinks are standard in the industry; thus, knowledge needed to begin production is not complex and can easily be acquired. In addition, inputs used in the manufacture are commodity items (e.g. sugar, syrup, and fruit juices). Though the latter factors increase the susceptibility of companies to face new entrants, still, threats of entry by potential competitors are at a low degree. This …

…dominance in the industry. Rivalry Among Competitors. The dominance of Coca-Cola, PepsiCo and Dr Pepper/Seven-Up in the industry clearly depicts an oligopolistic environment. Competition among these firms is fierce for the reason that the industry is at its maturity. Rivalry among competitors has been primarily in the form of price wars. Intensity of the rivalry among industry players may be attributed to the high level of exit barriers and the highly lucrative industry market.