Problem
The beverage industry is dominated by a few companies such as Coca-Cola and PepsiCo. It would be very difficult to reach the economies of scale and brand recognition that these companies have achieved.
Which of the assessment from the five forces model below would be the best fit?
a) Negotiating Power of Suppliers-low
b) Negotiating Power of Buyers-high
c) Rivalry-moderate
d) Threat of New Entrants-low
e) Threat of Substitutes-high
Explain why the selected answer is correct. Explain why the answer links with that competitive force and why you think the force is high, moderate or low.