Describe how coca-cola able to retain most of the profits

Reference no: EM1344235

Coca-Cola and Pepsi are both very profitable soft drinks. Inputs for these products include sugar, bottles/cans, and soft drink syrup. Coca-Cola and Pepsi produce the syrup themselves and purchase the other inputs. They then enter into exclusive contracts with independent bottlers to produce their products. Use the five forces framework and your knowledge of the soft drink industry to describe how Coca-Cola and Pepsi are able to retain most of the profits in this industry.

Reference no: EM1344235

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