Soft Drink Industry: Degree of Rivalry

As mentioned on the five major competitive levels of competition, the main players in the Irish soft drink market are Coca-Cola, Britvic Plc. , PepsiCo and the group Danone. The game is focused on these four major players with a total market capacity of 57.5%. This indicates that market share among industry participants is not equal. The market is fairly fragmented, market giants are tied up with other SMEs, accounting for 42.5% of the total market capacity.

The geographic scope of our competitors explains some of the economic characteristics of the soft drink industry. Barbara Murray (2006c) says that: "The industry is dominated by three major companies, Coca-Cola is the king of the soft drink empire and the world market share is about 50%." In addition to these major players, small and medium-sized enterprises such as Kurt and National Beverage Company Companies constitute the remaining market share. Some of the profits of all five companies are from outside the United States.

The soft drink industry is mainly concentrated in the three major companies of Coca-Cola Company, PepsiCo and Cadbury Schweppes, accounting for 90% of the annual domestic soft drink market of $ 5.2 billion (Santa, 1996). The soft drink market is a relatively mature market with an annual rate of 4 to 5%, competition between brands is intensifying in market share and growth (Crowch, Steve). In this article we will look at Porter's five powers and consider whether this is an attractive industry and entry barriers (if any). In addition, I will explain some important success factors and the future of the industry.

For more than a century, the intense competition between Coca-Cola and Pepsi has formed the soft drink industry (accounting for 73% of the market share after merger). The most fierce battle in the coke war took place in the US $ 60 billion industry, where the US consumes an average of 53 gallons of carbonated soft drinks annually. In close scrutiny from 1975 to 1995, the average annual growth rate of Coca-Cola and Pepsi was about 10% as carbonic beverage consumption increased in the United States and around the world. This comfort was threatened in the late 1990s when US consumption declined for the second consecutive year and worldwide shipments slowed down due to Coca-Cola and Pepsi.