Aveneu Park, Starling, Australia

Supplier increase their prices. The UK also work on

Supplier
power: In the UK, the country’s industries is determined on how
easy for their suppliers to increase their prices.  The UK also work on how many potential
suppliers they have, how unique is the product or service that they provide and
how expensive it would be for the UK’s industries to switch from one supplier
to the other. This is beneficial for Coca-Cola when the company wants to trade
in the UK because the company can also structure how it is going to be
satisfying its suppliers in order to build a good relationship with them and
most importantly on how to ensure that the suppliers do not increase their
price. This is because suppliers are a big factor in the success of a business.
An advantage Coca-Cola can get with suppliers is that the more the company has
to choose from, the easier it will be for Coca-Cola to switch to a cheaper
alternative. However, if Coca-Cola gets suppliers that have a strong position
they have the ability to charge the company more and it could impact the
company’s profit.

Buyer power: Buyer
power is very important in the UK because with buyers the country is always
working on how to satisfy them even more because they are the backbone to all
of the businesses in the UK. This is what Coca-Cola have to work hard to get
when the company trades in the UK because if the company deals with few
customers, they have more power for example, they have the power to go to Coca
Cola’s competitors to get the product or service they want. But Coca Cola’s
power will start increasing in the UK when they have a huge customer base.

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Competitive
rivalry: The UK looks at the number and strength of its industries’
competitors, how many rivals they have, who are they and how does the quality
of their products and services compare with theirs (the UK’s). This is good for
Coca-Cola because when they see their competitors like Dr Pepper Snapple Group
or Nestlé is ahead of them a bit, then they tighten up their seatbelt to be
better than before. In this case, the intense competition motivates Coca-Cola
to work harder. It is important for Coca-Cola to do this because in markets
with many rivals, Coca Cola’s buyers and suppliers can go elsewhere if they
feel like they are not getting a good deal from the company.

Threat of
substitution: This refers to the likelihood of UK’s customers finding a
doing what UK does. For instance, instead of people buying a can of coke, water
is a suitable alternative to coke. Moreover, water is heathier than coke. This
a very big threat to Coca-Cola because nowadays, people are starting to realise
that coke is unhealthy – which means that Coca-Cola could possibly start losing
profit and lose to its competitors.

Threat of
new entry: Coca-Cola’s position can be affected by people’s ability to
enter the company’s market. If Coca-Cola had little protection for their key
technologies, then their rivals could have quickly entered Coca-Cola’s market
and weaken the company’s position. But luckily Coca-Cola had a strong and
durable barriers to entry, then they were able to preserve a favourable
position and took advantage of it.  

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