The profitability of the leading cola syrup manufacturers, Operation Management

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The profitability of the leading cola syrup manufacturers

The profitability of the leading cola syrup manufacturers PepsiCo and Coca-Cola and of the bottlers in the cola business is different. PepsiCo and Coca-Cola enjoy an 81 percent operating profit as a percentage of sales; bottlers experience only a 15 percent operating profit as a percentage of sales. Perform a Porter's Five Forces analysis that explains why one type of business is potentially so profitable relative to the other.

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