Sample Essay

According to Porter’s the five forces analysis the level of rivalry in the concentrate manufacturing industry is relatively moderate as the concentrate manufacturers have to be licensed by the Carbonated Drink Companies. Similarly the threat of new entrants is also limited. The power of the suppliers in the industry is also limited as the manufactures take sweeteners, caffeine and color as their main ingredients for the concentrates that are easily available to them.

The customers of the manufacturers are the bottlers that are many in the market and the carbonated drinks companies that tend to form alliances with the concentrate manufactures. He threat of substitute products I high in the industry but patents and trademark provide protection to the concentrate manufactures and the Carbonated Drinks Industries.

Comparatively the level of rivalry amongst the bottlers is very high due to the level of large number of bottlers operating in the industry. The threat of new entrants is relatively low as significant infrastructure is required to set up bottling plants

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Essay: Concentrate producers
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