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•Product differentiation
•Capital requirements
•Access to distribution channels •Low threat in soft drink industry
•Government Policy •High Capital requirement
• Time and cost of entry •High fixed costs
• Specialist knowledge •Heavy advertising
• Economic of scale •Strong brand name
• Cost advantages •Loyal customers
• Technological protection
12/25/2018 • Barriers to entry Strategy Formulation 7
Bargaining power of buyers Example: Coca Cola
Source:
http://news.cnet.com/8301-1001_3-20003629-92.html
• Beat competitors
• Differentiation
• Loyalty of customers
• Lack of information
Examples:
Anyone can craft a strategy, but it takes real managerial skills to implement them.
The further we get ahead the more test we run. The more we learn..
the more we understand our customers.