Case analysis of the Soft Drink Industry

Third highest grade in the class Needs work on the critical success factors for the industry Table of Contents Introduction         3 Description         3 Segments         3 Caveats         4 Socio-Economic         4 Relevant Governmental or Environmental Factors, etc.         4 Economic Indicators Relevant for this Industry         4 Threat of New Entrants         5 Economies of Scale         5 Capital Requirements         6 Proprietary Product Differences         7 Absolute Cost Advantage         8 Learning Curve         8 Access to Inputs         8 Proprietary Low Cost Production         8 Brand Identity         9 Access to Distribution         9 Expected Retaliation         9 Conclusion         10 Suppliers         10 Supplier concentration         10 Presence of Substitute Inputs         11 …

…of both the domestic and foreign markets, the soft drink industry is attractive for investment. Fixed Costs         The S&P Industry Survey has shown the soft drink industry profit margin to be on a steady incline over the past fifteen years. Levels in 1980 were near 14%, while as of year-end 1995 were over 20% and expected to flatten a bit. This flattening effect may be an indication that fixed costs are on the rise due to expansion