Buy custom Coca-cola vs. Pepsi
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| Topic: |
Business
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| Number of pages / Number of words: |
15 / 4155 |
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They also deal with similar suppliers and buyers. As shown in Exhibit 5, in 2000, a typical U.S. CP earned 35% pretax profits on their sales, while a typical bottler earned only 9% profits, which meant that the industry is able to generate positive economic profits.
Threat of Potential Entrants
Although there are only three major players in this industry (Coca ?Cola Company, PepsiCo and Cadbury Schweppes), the easiness of entry and exit does not constitute any threat for them...
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Through their Direct Store Door (DSD) practices, these companies have close relationships with their retail channels and are able to defend their positions effectively through discounting or other tactics. So, although the CP's industry does not require a vastly investment, entering in the bottler sector would require substantial investment dissuading, therefore, the entry...
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