peer response

As we discuss before Coca-Cola company is one of the leading in Beverages, continue to mention the rest of the five forces analysis for Coca-Cola, the bargaining power of customers, bargaining power of suppliers, and competitive rivalry.

Bargaining power of customer: is an assessment of the power of a buyer is relative to the seller, the more buyers can influence the prices to be reduced (Valuation Academy).

By building large customers, helps to reduce bargaining and the firms to streamline sales and production process

Innovated new products, providing discounts on established products to continue bringing customer

New products will reduce the defection of an existing customer of Coca-Cola company to its competitors (Fern Fort University).

Bargaining power of suppliers: the more seller is relative to the buyer, influence can reduce the profits of the buyers through more advantageous pricing (Valuation Academy).

Build an efficient supply chain with multiple suppliers

Experimenting with products designs using raw materials, if the price goes up can change to another raw material

Using dedicated suppliers with third-party manufactures depends on them (Fern Fort University).

Competitive rivalry: is among all the existing competition in the industry can drive to reduce price and profitability.

Building difference

Have a better scale to be better

Collaborating with competitors to increase the market size rather than just competing for a small market (Fern Fort University).

Fern Fort University http://fernfortuniversity.com/term-papers/porter5/analysis/710-the-coca-cola-company.php

Valuation Academy http://valuationacademy.com/bargaining-power-of-buyers/

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