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How the forces mentioned above influenced decision

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Question 1 

Use your own knowledge to consider the carbonated soft drink (CSD) industry. Both Coca-Cola and Pepsi-Cola are massive brands that have dominated the space for decades and traditionally shown a high level of profitability. However, since the turn of the century, sales have been in a steady decline (generally). 

  • Using Porter's 5 forces (New Entrants, Buyer Power, Competitor Rivalry, Supplier Power, Substitutes) as your tool for analysis, discuss why you think this might be?
  • Discuss whether or not you think the CSD market is an attractive market to enter and why?

Question 2 

Aladdin a close friend from high school calls and asks to borrow $10,000 so that he can open a pizza restaurant in your hometown. Use Porter's Five Forces to analyze the request and your decision to invest. Note that you only invest in opportunities that can realize above-average profits. 

  • Identify at least two forces that present the greatest risk to lending him the money. Do you invest? Why or why not?
  • Explain how the forces mentioned above influenced your decision.

Reference no: EM132783766

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