1. ColaWarsContinue:Coke & Pepsiinth 21stCentury HjortFanni 20597 GkanidouEftychia 40096 WeiqiangHan 70399 WhenrongZhang70407

2. Porter’sFiveForces SUPPLIERS Bargainingpower of suppliers ConcentrateProducers Threat of substitutes Threat of new entrants POTENTIAL ENTRANTS (otherColaConcentrateProducers) SUBSTITUTES (NonColaDrinks) Rivalry among existing firms Bargaining power of buyers BUYERS (Bottlers)

3. BargainigPowerofSuppliers Manysuppliers Suppliers’ productscanbesubstituted (sugar/aspartame) Nondifferentiatedproducts-easyforcompanytochangesuppliers

4. Bargainingpowerofbottlers Many & segmentedbuyers HighSwitchingCosts Limitedoperatingmargins Nopricingcontrol CCE/PBG

5. ThreatsofSubstitutes Samefunction (non-colarefreshments) PriceElasticity Newneeds (sportsdrinks) Internationalization (differentneeds/customs)

6. PotentialEntrants StrongCustomerLoyalties Limited Access toDistributionChannels StrongretaliationbyIncumbents

7. Coca-ColaVsPepsi TwoStrongCompetitors HighOperatingCosts SlowIndustryGrowth –MatureMarket Lackofdifferentiation (yetbranding)

9. BottlingBusiness ConcentrateProducersandother Bargainingpower of suppliers Bottlers Threat of substitutes Threat of new entrants POTENTIAL ENTRANTS SUBSTITUTES Rivalry among existing firms Bargaining power of buyers BUYERS (Retailers)

10. Profitabilityofthebusiness Competitionhasdecreasedprices Balancingthemarket Extensiontoothermarkets (non-CSDsandinternational)

11. Themodelhelpsusto: Understandthestructureofthemarket Identifythemostsignificantforce Anticipatepotentialchangestowardsnon-CSDs Understandthestructureofthedifferentparticipants