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1Introduction 2Market segmentation 3Governmental and environmental factors 4Economic indicators 5Capital requirements 6Proprietary Product Differences 7Absolute Cost Advantage 8Learning Curve 9Access to Inputs 10Proprietary Low Cost Production 11Brand Identity 12Access to Distribution 13Supplier concentration 14Impact of Input on Cost or Differentiation 15Threat of Backward or Forward Integration 16Accesses to Capital 17Summaries of Suppliers 18Buyers 19Buyer Volume 20Buyer switching cost 21Threat of backward integration 22 Price to total purchases 23Market leaders and their brands 24Conclusion 25 References 1This paper will explore Porters Five Forces to determine whether or not this is an attractive industry and what barriers to entry if any exist In addition we will discuss several critical success factors and the future of the soft drink industry within the UK Soft drinks are sometimes defined to cover mainly fizzy drinks carbonates and concentrates or dilutables such as squash and cordials However Key Note has defined the sector to include all of the following categories of non-alcoholic beverages Carbonated or fizzy drinks -- includes colas lemonade fruit flavours and mixers for use with alcohol Health drinks - herbal mixtures or vitamin drinks such as redbull or lucozade Concentrates or dilutables for take-home purchasing -- includes squash comminute fruit drinks cordials and syrups Fruit drinks sold ready-to-drink RTD with some fruit juice content but not enough to legally warrant being called fruit juices Fruit juices Bottled water comprising natural mineral water from a single named source as well as flavoured waters eg Perrier With a Twist Table 81 The UK Soft Drinks Market by Sector by Value m at rsp 1995-1999 Change 199519961997199819991995-1999 Carbonates38504000415040004350130 Fruit juices Fruit drinks12101250135014001625343 Concentrates810825800775750-74 Bottled water390425450425500282 Total62606500675066007225154 Change Year-on-year-3838-2295 rsp -- retail selling prices Source Key Note 2 Market segmentation Table 82 Major Manufacturers and Distributors of Soft Drinks 2000 SectorMajor Brands Company Coca-Cola
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