Non alcoholic beverage industry threat of new entrants .edu
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In vending channel, Coke and Pepsi have their dominance by giving financial incentives to encourage investment in machines.In this case, new entrant has huge competition to face. Ex: Coke supplies for Subway, McDonald’s and Burger King whereas Pepsi took over Pizza Hut, Taco Bell, KFC. Coke and Cadbury Schweepes have long retained control over fountain sales. Competition for fountain accounts is very intense and often CSD companies sacrificed profitability in order to land and keep those accounts.These companies sell popular and leading products like Coke and Pepsi, so for a new entrant to find itself, a merchandiser is difficult task. The mass merchandisers include warehouse clubs and discount retailers like Wal-Mart.In this ever-expanding array of products offered by existing players, there would be intense competition for the new entrant. The main distribution channel is the Supermarket where bottlers fight for shelf space to ensure visibility for their products.
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Soft drink industry is very profitable, mainly for the concentrate producers than the bottler’s. The Soft Drink Industry is primarily engaged in manufacturing non-alcoholic, carbonated beverages, mineral waters and concentrates and syrups for the manufacture of carbonated beverages.