Coca-Cola Porter’s 5 Five Forces: 2022 Detailed Overview

Porter’s Five Forces Analysis of Coca-Cola



Key Facts


Name Coca-Cola
Industry Beverages ( soft Dinks )
Founded 1886
Headquarters Atlanta, Georgia, USA
CEO James Quincey
Revenues $38.70 billion (2022) by Forbes
Profit $9.80billion ( 2022) by Forbes
Competitors Red Bull, PepsiCo, Keurig Dr Pepper.



Company Overview:


The Coca-Cola Company is a producer, distributor, and retailer of non-alcoholic beverages, including tea, coffee, sparkling soft drinks, water, enhanced water, sports drinks, juice, dairy and plant-based beverages, and energy drinks. Coca-Cola, Diet Coke, Coca-Cola Zero, Fanta, Sprite, Minute Maid, Georgia, Powerade, Del Valle, Schweppes, Aquarius, Minute Maid Pulpy, Dasani, Simply, Glaceau Vitaminwater, Bonaqua, Gold Peak, Fuze Tea, and Ice Dew are just a few of its well-known brands. It operates through the following divisions: Bottling Investments, Global Ventures, Europe, Latin America, North America, Asia Pacific, and Eurasia and Africa. Asa Griggs Candler established the business in 1886, and its corporate headquarters is in Atlanta, Georgia.


Porter’s Five Forces Analysis


Porter’s Five Forces Analysis is a popular framework for examining business strategies in light of the industry in order to lessen rivalry and increase profits. It was developed in 1979 at Harvard Business School by Professor Michael E. Porter.


Coca-Cola Rivalry among Existing Competitor


Coca-Cola founded in 1886, The 2021 Global Unit Case Volume by Operating Segment for Coca-Cola is as follows: Asia Pacific is 23%, Europe, Middle East & Africa is 29%, Latin America is 27%, North America is 18%, and Global Ventures is 3%. With a global brand worth of over 74 billion dollars, Coca-Cola has constantly been named as the best soft drink brand in the world.The Cola-Cola Company’s revenue has fluctuated in recent years across the globe; starting in 2017, Coke faltered as customer preferences switched away from sugary beverages. Due to the health concerns of artificial sweeteners, even Coke’s diet brands saw a dip.But as low sugar beverages regained their sales momentum, they reached approximately 40 billion US dollars in their most recent fiscal year thanks to their R&D and marketing efforts.

Based merely on taste, the blind research revealed that most Americans favoured Pepsi Cola to Coca-Cola.However, when comparing market capitalization, Coca-Cola came out ahead of Pepsico with a market worth of $282.86 billion compared to $238.13 billion for Pepsico. Additionally, when comparing just the beverage sector, Coca-Cola generated $38.66 billion in 2021 compared to Pepsico’s $35.76 billion.

PepsiCo.One of the most prestigious international food and beverage corporations is PepsiCo, Inc., based in New York, United States. Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), Latin America, North America Beverages (NAB), Europe Sub-Saharan Africa (ESSA), and Asia, Middle East, and Africa make up the company’s six divisions (AMENA). In 2021, PepsiCo reported net revenues of approximately 80 billion US dollars worldwide, according to its most recent annual report. The business earned 7.6 billion dollars in net income that same year.Despite being best known for a soft drink, it’s food that is the best performing segment for the company. In 2021, Frito-Lay alone generated almost 20 billion U.S. dollars in revenue, accounting for about one quarter of PepsicCo’s total revenue worldwide.

Compared to Coca-Cola, which had a market capitalization of $282.86 billion, it was smaller, at $238.13 billion. PepsiCo outpaced rivals like the Coca-Cola Company and Nestlé, which each had 327 new product launches during that time period, in the non-alcoholic beverages market in the United States between January 2016 and February 15, 2021, launching 342 new products.

Red Bull The company was established in 1987, and its current Austrian headquarters are located in Fuschl am See. India (+30%), Brazil (+22%), and Eastern Europe (+22%) were the top three markets for growth. Since Red Bull was first introduced in 1987, the business has sold 75 billion cans overall thanks to a marketing strategy based on extreme sports. In 2018, the energy drink introduced a new line of organic sodas, three of which were caffeine-free.

The corporation made roughly 8.87 billion euros in revenue worldwide in 2021. In 2022, Red Bull was the most popular energy drink in the country. The business is active in more than 166 nations worldwide. With a brand value of roughly 14.9 billion dollars in 2021, Red Bull was the second-most valuable beverage brand globally.

Keurig Dr Pepper The company Keurig Dr Pepper, Inc. manufactures and markets non-alcoholic beverages. Coffee Systems, Packaged Beverages, Beverage Concentrates, and Latin America Beverages are the segments through which it operates. The business was established in 2018 and has its main office in Burlington. The following revenue increase has been seen as being constant: $12.8B in 2021 from $5.53B in 2009. Its revenue for the year ending September 30, 2022, was $13.645 billion, an increase of 9.93% from the previous year. Its revenue for 2021 was $12.683 billion, up 9.17% from 2020, for 2020 was $11.618 billion, up 4.48% from 2019, and for 2019 was $11.12 billion, up 49.42% from 2018.


Coca-Cola Threat of New Entrants


Economies of Scale: It becomes difficult for new entrants to compete on price when industry main players attain the highest production level possible internationally, which allows them to considerably lower per-unit production and distribution costs. With a volume share of about 45%, Coca-Cola was rated as the leading carbonated soft drink (CSD) company in the US. The biggest rival to Coca-Cola, PepsiCo, held around 25% of the market in America. More than one billion people worldwide eat additional PepsiCo products every day in more than 200 nations and territories.


Time to become established: The Coca-Cola company Since its founding in 1886 and the establishment of PesiCo in 1965, the company has built global distribution networks that are very difficult for rivals to match. A beverage firm called The Coca-Cola sells its goods in more than 200 nations and territories. Coca-Cola has 225 bottling partners and 900 bottling facilities worldwide.


Coca-Cola Bargaining Power of Suppliers


Because Coca-Cola sets standards for suppliers and selects vendors on a regular basis for audits to determine whether the standards are being met, suppliers have very little bargaining power. By the end of 2021, our strict Supplier Guiding Principles (SGP) regulations had been followed by 95% of our internal operations, 93% of system bottlers, and 92% of our Tier 1 suppliers.The ESG and Public Policy Committee of our Board of Directors evaluates the audit undertaken and the audit findings on an annual basis. 115+ nations and territories and more than 500 suppliers were evaluated using the PSA methodology. It concentrated on boosting the total diversity of our suppliers, and we have pledged to spending at least $1 billion yearly with diverse suppliers. Further accelerating Supplier Diversity Commitments.


Coca-Cola Bargaining Power of Buyers


As a result of Pepsico and Coca-high Cola’s substitutability and low switching costs, the buyer’s bargaining power is only moderate. These two businesses’ strong brand recognition and connections to customers throughout the world are the only things keeping them at the top of the soft drink market. They get competitive benefits from continued innovation. For instance, Coca-recently Cola’s reformed recipe for Coca-Cola Zero Sugar offers a more reviving and delectable taste without altering the nutritional or ingredient content. In the summer of 2021, the new recipe began to appear on store shelves in the US and Canada.

In Europe in 2021, we brought back our “What The Fanta” campaign for a second year, featuring a “mystery” blue, zero-sugar flavor. To find out the flavor, customers could scan the

QR code on-pack to unlock a series of online clues. The previous year,a campaign for a “mystery” green flavor drove five times the rate of sales as traditional Fanta Orange during the same period

In 2021, we acquired full ownership of BODYARMOR, a line of sports performance and hydration beverages that has significant potential for long-term growth. In 2021, BODYARMOR launched BODYARMOR Edge, which combines the hydration of a sports drink with a boost of natural caffeine.


Coca-Cola Threat of Substitute Products or Services


The product’s main competitor is PepsiCola, which PepsiCo and Coca-Cola have been in a rivalry with for years. However, Coca-Cola is the market leader with a global brand value of over 74 billion dollars, while Pepsi only has a value of $ 14 billion, well behind Coca-Cola. Due to the increase of sugar, it lost its client base to Pepsico in 2017, but it gained it back in 2021. Coca-Cola led the beverage segment, but Pepsico had the highest overall revenue because to its food brand, Frito Lays. 200 master brands from Coca-Cola span five different areas.





  1. Forbes, Profile,see link here |CocaCola
  2. Forbes, Profile, see link here |RedBull
  3. Forbes, Profile, see link here |Keurig Dr Pepper
  4. Coca-Cola to cut 1,200 jobs as sales slump, see link here |CNNBusiness
  5. Coca-Cola Company – statistics & factsavailable at| Statista
  6. Most valuable soft drink brands worldwide in 2021, based on brand value(in million U.S. dollars)available at| Statista
  7. CocaCola Annual Reports available at| Coca-Cola
  8. PepsiCo – statistics & factsavailable at| Statista
  9. The 100 largest companies in the world by market capitalization in 2022(in billion U.S. dollars)available at| Statista
  10. Leading beverage companies worldwide in 2021, based on sales(in million U.S. dollars)available at| Statista
  11. Top companies in the non-alcoholic beverages* sector in the United States between 2016 and 2021, by number of new product launchesavailable at| Statista
  12. Revenue of Red Bull worldwide from 2011 to 2021(in billion euros)available at| Statista
  13. Keurig Dr Pepper Revenue 2010-2022 | KDPavailable at| MacroTrends
  14. The World’s Largest Nonalcoholic Beverage Companyavailable at| CocaCola
  15. Global Leader in Convenient Foods and Beveragesavailable at| PepsiCo

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