Soft Drink Industry Case Study

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Term Paper Title	Soft Drink Industry Case Study
# of Words	4332
# of Pages (250 words per page double spaced)	17.33

Soft Drink Industry Case Study

Soft Drink Industry Case Study

Table of Contents

        Introduction    3
        Description     3
        Segments        3
        Caveats 4
        Socio-Economic  4
        Relevant Governmental or Environmental Factors, etc.    4
        Economic Indicators Relevant for this Industry  4
        Threat of New Entrants  5
        Economies of Scale      5
        Capital Requirements    6
        Proprietary Product Differences 7
        Absolute Cost Advantage 8
        Learning Curve  8
        Access to Inputs        8
        Proprietary Low Cost Production 8
        Brand Identity  9
        Access to Distribution  9
        Expected Retaliation    9
        Conclusion      10
        Suppliers       10
        Supplier concentration  10
        Presence of Substitute Inputs   11
        Differentiation of Inputs       12
        Importance of Volume to Supplier        13
        Impact of Input on Cost or Differentiation      13
        Threat of Backward or Forward Integration       13
        Access to Capital       14
        Access to Labor 14
        Summary of Suppliers    14
        Buyers  15
        Buyer Concentration versus Industry Concentration       15
        Buyer Volume    15
        Buyer Switching Cost    15
        Buyer Information       16
        Threat of Backward Integration  16
        Pull Through    16
        Brand Identity of Buyers        17
        Price Sensitivity       17
        Impact on Quality and Performance       17
        Substitute Products     18
        Relative price/performance relationship of Substitutes  18
        Buyer Propensity to Substitute  18
        Rivalry 18
        Industry Growth Rate    20
        Fixed Costs     21
        Product Differentiation 21
        Brand Identity  21
        Informational Complexity        22
        Corporate Stakes        22
        Conclusion      23
        Critical Success Factors        23
        Prognosis       24
        Bibliography    26
        Appendix        27
        Key Industry Ratios     27

Introduction

Description
     The soft drink industry is concentrated with the three major players,
Coca-Cola Co., PepsiCo Inc., and Cadbury Schweppes Plc., making up 90 percent of
the $52 billion dollar a year domestic soft drink market (Santa, 1996).  The
soft drink market is a relatively mature market with annual growth of 4-5%
causing intense rivalry among brands for market share and growth (Crouch, Steve).
This pap...

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