Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's five forces model.Which of the following represents a substitute product in the soft drink industry?
A)Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B)Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C)Zevia Natural Diet Soda begins selling directly over the Internet.
D)Vitamin water, fruit juice, coffee are all beverage options available to consumers.

Question

Quizplus · Accepted Answer

Vitamin water, fruit juice, and coffee are all examples of substitute products for soft drinks. This means that consumers have the option to choose these products instead of soft drinks, which creates a competitive threat to the soft drink industry. The other choices do not represent substitute products, as A represents a commitment between stores and the soft drink company, B represents a negotiation between Walmart and one specific soft drink company, and C represents a direct-to-consumer sales channel for a specific brand of soda.

Your Boss, Kerry Miller, Has Asked You to Analyze the Soft