Coca-Cola External

Coca-Cola's industry conditions, according to the Five Forces analysis, are generally favorable. The environmental conditions, according to the PEST analysis, are also generally favorable. This means that with few obstacles, Coca-Cola should be able to achieve its business objectives.

NCAIS Code

The industry code for Coca-Cola is 312111: Soft Drink and Ice Manufacturing (U.S. Census Bureau, 2007).

Porter's Five Forces

Porter's Five Forces explain the ability of firms to earn profits in their industry. The bargaining power of suppliers is relatively low. Coca-Cola is a high volume buyer -- the highest in the industry -- and for most suppliers this volume is critical to the business. The inputs are not well-differentiated, so the switching costs for Coke are not especially high. The bargaining power of buyers is moderate. Most wholesale and retail buyers are all but obligated to carry Coca-Cola, given the popularity of the firm's products. Some...
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