Question

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents buyer power 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.
E. Coke and Pepsi submit bids to the owner of a football stadium for the exclusive sale of their products during games.

Answer 1

Buyer power in the soft drink industry can be seen in the requirement of stores to commit to minimum orders of Pepsi products.

Step-by-step explanation:

In the soft drink industry, buyer power refers to the influence that buyers or customers have over the industry. It can be measured by factors such as the ability of buyers to negotiate prices, set requirements, or switch to alternative products. From the given options, the example that represents buyer power in the soft drink industry is option A - Pepsi requiring stores to commit to minimum orders of 1,000 cases. This requirement gives Pepsi leverage over the stores, allowing them to exert power in their negotiations.