The competitive success factors within the CSD industry derived from the above analyses are as follows: Firstly, constant product innovation is necessary. * All Partners were chosen among 50+ writing services by our Customer Satisfaction Team

Key Success FactorsAs Wheelen & Hunger (2006, p91) argued: вЂњKey success factors are variables that can significantly affect the overall competitive positions of companies within any particular industryвЂќ. The recovery of beverage bottles increases cost and brings negative impact on companies in the relative industry. вЂњRelative Power of Other StakeholdersвЂќ Environmental Protection Organizations in Maine, Michigan, Oregon and Iowa have successfully passed the regulations to receive fines for the containers cast off. WhatвЂ™s more, they have negotiated with multiple suppliers and this results in suppliersвЂ™ less power.вЂќBargaining Power of BuyersвЂќ Due to customer loyalty, the power of buyers is relatively low.Д«oth the retail channel and the restaurant channel are bonded by contracts and customer demand. Both of the two companies could handle the supply themselves. вЂњBargaining Power of SuppliersвЂќ Few commodities are needed for their production but they can be still attracted from various suppliers.

Also, customer switching cost is low and therefore, the industry should pay more attention on providing consumer more added values. вЂњThreats of Substitute ProductsвЂќThreats from substitutes of the CSD industry are high for every form of non-carbonated beverage could be regarded as possible substitute. The rivalry between the two leaders is extremely high, but other players in the market stand no possibility in competing against the well established brands: Coca-Cola and PepsiCo. вЂњRivalry among Existing FirmsвЂќ According to вЂњ2007 Annual ReviewвЂќ released by The Coca-Cola Company, in the US non-alcoholic beverage market, by volume, Coca-Cola covers 43% and Pepsi 31% of the market share. вЂњThreat of New EntrantsвЂќ The pressure from new entrants to the CSD industry are not very strong because potential entrants can only be the companies with vast distribution systems that can compete with the current market players.In addition, consumers are always brand loyalty in this market and this causes barriers of entry high. It provides a framework for analysing the nature and extent of the competition as well as companyвЂ™s competitive position within an industry (Campbell & Stonehouse, 2002). As it is shown above in Figure 1, PorterвЂ™s Five Forces Model of competitive analysis is a widely used approach for developing strategies in many industries.

Pepsico threat of new entrants