The increase in customer preference for healthy eating over the past ten years has presented a threat to the growth of Coca Cola's soft drink business.Which of Porter's 'five forces' would you attribute this change in preference?
A) Differentiation
B) Bargaining power of buyers
C) Bargaining power of suppliers
D) Threat of substitute products
E) Potential new entrants

Question

Quizplus · Accepted Answer

The increase in customer preference for healthy eating has led to a growing availability and popularity of substitute products to Coca Cola's soft drinks, such as bottled water, juices, and teas. This is a clear example of the "Threat of substitute products" force in Porter's five forces analysis.

The Increase in Customer Preference for Healthy Eating Over the Past