Forces That Affect Individual Companies and Even Entire Industries

Therefore, this paper aims to explore the force that generally affects many of the broad industry as well as the factors that drive change in the soft drink industries. Part 1 First and foremost, new entrants who bring the desire in market share, as well as the new capacity, is a threat to many industries. This is because more pressure is felt in the cost, price over and above to the rate of the investment that many companies put forward to compete. When the threat of the new entrants has to increase tremendous, many of the companies frequently hold down their prices or decide to give their investment a boost that will deter the new entrants, and so it is the threat of the new entrants that brings the profitability down.

Moreover, dominant suppliers are another force that is used to shape strategies. Inflation has also affected many of the industry to the extent that many customers go for the substitute products or foregoes others due to the high prices of the commodities something that causes the companies to dissolve (McKinnon and Ronald, 456). Part 2 The soft drink manufacturing has displayed a moderate growth in the recent years. Some of the changing consumers have taken an alternative in beverages that are considered as being healthy and changing their demands from the carbonated soft drinks. Despite the competition threat energy drinks as well as the value sports increases their focus on the zero-sugar, low diet level of sugar that have supported the growth of industries.