Essay: The Power of Suppliers

Sample Essay

For Pepsi, the power of suppliers ranges from low to as high as medium. Even though governments in many countries are making efforts to step in and reduce monopolistic behavior, yet Pepsi has the benefit of requiring nutrient and non-nutrient sweeteners from its suppliers.

The threat of Substitutes

Even though more and more consumers are choosing to try and adapt to energy drinks and drinks such as tea and coffee, the threat of consumers leaving cola drinks altogether and opting for energy drinks and drinks such as tea and coffee is relatively low considering the fact that Pepsi and Coke are considered unparalleled in the cola segment.

Competitive Rivalry

Prominent rivals of Pepsi include Coca Cola, Jolt Cola, Inca Kola and Royal Crown Cola also known as RC Cola. Competition is most severe between Pepsi and Coca Cola, with RC Cola often coming in third. Rivalry is severe with Coca Cola and Pepsi both on the lookout for niche markets throughout the year.

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