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Bargaining Power Of Buyer : Coca Cola

Satisfactory Essays

Bargaining Power of buyer: (Low)
• The individual buyer has no pressure on Coca-Cola (Porter’s Five Forces In Action: Sample Analysis of Coca-Cola).
• Large retailers have bargaining power because of the large order quantity. Consumer brand loyalty lessens the bargaining power (Porter’s Five Forces In Action: Sample Analysis of Coca-Cola).
Bargaining Power of Supplier: (Low)
• The main ingredients for soft drink include carbonated water, phosphoric acid, sweetener, and caffeine. The suppliers are not concentrated or differentiated (Porter’s Five Forces In Action: Sample Analysis of Coca-Cola).
• Coca-Cola is one of the largest customers of any of these ingredients (Porter’s Five Forces In Action: Sample Analysis of Coca-Cola).
Rivalry …show more content…

Coca Cola with its vast global presence and unique brand identity is definitely one of the most recognizable brands in the world (Bhasin, 2017).
Secondly, company valuation will be discussed. Coca Cola is one of the most valuable companies in the world. Coca cola is valued around 79.2 billion dollars. This valuation includes the brand value, brick and mortar factories, and assets spread out across the world. Which includes the complete operations cost and profit of Coca cola (Bhasin, 2017).
Next, Coca Cola’s global presence will be discussed. Coca Cola has operations in 200 countries across the world. They are wide world in present in almost every market. This is what allowed Coca Cola to build its brand name (Bhasin, 2017).
The final strength will be customer loyalty. With such strong products, it is natural that Coca cola has a lot of customer loyalty. Their products have a huge fan following. Due to the loyalty to Coca Cola’s flavor, finding substitutes becomes difficult for the customer (Bhasin, 2017).
There are weaknesses that are present with Coca Cola as well. These weakness covers competition with Pepsi, absence of healthy beverages, and water management.
The first weakness is its competition with Pepsi. Pepsi is the only company that knocks Coca Cola off the top of the mountain. It is the only company that can look Coca Cola into their eyes and not blink. The competition in these

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