Porters Five Forces Model Analysis. A p p l y i n g P o r t e r s 5 f o r c e s allows the potential attractiveness in terms of profitability of the company.

. Theanalysis below will concentrate on the industry from COCA COLA perspective:(1) Bargaining Power of Supplier. I n p u t s , s u c h a s m a t e r i a l , labor, supplies, etc. are standard rather than unique or differentiated. Thisa l l o w s v a r i a b l e s u b s t i t u t e s o f i n p u t s r e a d i l y a n d r e s u l t e d i n n u m e r o u s potential suppliers. Suppliers themselves will find it hard to enter businesslike COCA COLA and perform function in-house. Since COCA COLA is p r o d u c i n g a t l a r g e s c a l e , t o s u p p l i e r s , t h i s b u s i n e s s i s v e r y i m p o r t a n t ; however the cost of purchase has significant influence on overall costs. This requires COCA COLA to carefully choose its suppliers to suppressc o s t p r o b l e m . M o s t o f t h e s u p p l i e r s i n t h e i n d u s t r y a r e t h e s t r a t e g i c partners of different players in the industry and there are many suppliers available. Therefore the suppliers are not in a position to threaten the companies.(2) Bargaining Power of Buyers. T h e r e a r e a l a r g e n u m b e r o f buyers and customer relative to the number of firms in the industry, eachw i t h r e l a t i v e l y s m a l l p u r c h a s e s . H o w e v e r , t h e r e i s n o c o s t incurred inswitching suppliers. COCA COLAs product i s v e r y u n i q u e t o s o m e degree and has accepted branding. However, customers are very highlysensitive to price, therefore choosing the most cost efficient suppliers arevery crucial to minimize cost, thus maximizing profit. The buyers are alsonot in a position to bargain the prices from the companies as there are afew dominant sellers in the industry who have the major market share of non-alcoholic drinks.(3) Threats of Substitute . I t c o s t t h e c u s t o m e r s n o t h i n g t o s w i t c h t o C O C A C O L A s s u b s t i t u t e s , s u c h a s c o f f e e , t e a a n d j u i c e . Besides, there has been a high potential of customers to substitute COCACOLA products.(4) Rivalry among Competing Firms. COCA COLAs main rival isPepsi and in Bangladesh Pran and RC cola are the biggest threat that they pose is price. When prices change, the effect on beverage industry towardst h e c o n s u m p t i o n o f s o f t d r i n k i s d r a s t i c . A l t h o u g h t h e p r o d u c t i s n o t complex, which makes it easier for other companies to compete againstCOCA COLA; they do not own a share in the market as large as either COCA COLA or Pepsi are. This is because it is hard to commit into thisindustry, as it will be hard to get out of this business, involving specializedskills, facilities and long-term contract commitments. Capital needed toenter the business line is very large. This will result in less competition, t h u s e n a b l i n g C O C A C O L A s c h a n c e t o g a i n m o r e m a r k e t s h a r e . T h e intensity of the rivalry in the industry is not very strong as the products aredifferentiated.(5) Threats of New Entrants.

Large companies like COCA COLA, have a cost or performance advantage in the beverage industry, because of established brand identities. Beside Pepsi, there are proprietary product differences in the industry. The capital needed to enter the industry and to be frontline in the industry like COCA COLA today is very expensive, for t h e r e a s o n t o b u i l d p r o d u c t i o n p l a n t , m a n a g i n g t h e c o m p a n y , commercialization, etc. and also a long time frame to build the confidencea n d l o y a l t y i n t h e t a r g e t m a r k e t . N e w c o m e r s a l s o f a c e d i f f i c u l t y i n accessing the distribution channels and it may be more costly compared to w h a t COCA COLA has to pay, given their level of experience in t h e industry. Licenses, insurance and qualifications are difficult to obtain.H o w e v e r , u p o n e n t e r i n g t h e i n d u s t r y , n e w c o m e r c a n e x p e c t a s t r o n g retaliation in the market. When this happens, their position may pose a threat to COCA COLA and COCA COLA may find more challenges ini m p l e m e n t i n g s t r a t e g i e s t o o b t a i n m o r e m a r k e t s h a r e a n d m a i n t a i n c u s t o m e r s l o y a l t y . O v e r a l l , C O C A C O L A a r e n o t c o m p e t i n g m a i n l y agains t Pepsi. The fight is against its substitutes. A new entrant is also not likely to be successful because of possible retaliation from the existing industry players. There are many substitutes available to non-alcoholic beverages therefore this lowers the attractiveness and profitability of the industry. But the relative pricing of the substitutes are higher therefore the industry does not suffer. f. Analysis of BGC Matrix Currently, Thums Up and Maaza a r e t h e STARs of Coca- Cola Company. The market shares of Fanta Sprite and Diet Coke a r e q u i t e l o w e v e n t h o u g h t h e y a r e g r o w i n g a t a g o o d r a t e . T h e y a r e QUESTION MARKS for the company. 2 liters bottle of coke and cans are the CASH COWS f o r t h e c o m p a n y a n d d o n o t n e e d p r o m o t i o n s t o b u l k u p t h e i r sales. The glass bottle of half liter bottle Coca Cola is a DOG for the company and need to be removed out of the market or a new strategy has to be adopted for the same