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Coca-Cola in 2011: In Search of a New Model (Power of Suppliers (Coke-Cola…
Coca-Cola in 2011: In Search of a New Model
Threat of New Entrants
Power of Buyers
Threat of Substitues
Rising Fear of Obesisty
Coke Response: Coke Zero
Smaller cans
Rising uptake of still beverages
Coke buys Honest T
Coke Buys Energy Brands Inc
Power of Suppliers
Coke-Cola Enterprises
49% Owned by Coke
51% owned by the Public
First Domestic Anchor Bottler
Coke has right to determine concentrate prices
More dependent on commodities market
Concentrate owners dependent on a few key supplies
Ball and Rexam
Concentrate owners negotiated with Ball and Rexam on behalf of bottlers
Bottlers
Losing out on profit of manufacturing
Could not raise prices to offset costs
Implementation of incidence pricing
Issues with existing territorial rights
Rivalry Among Existing Competitors
Pepsi
Franchise bottling network
Frito Lay
Quaker Oats
Gatorade
DPS
Distribution handled by third party bottlers