High fix cost, and market presence of Coca-Cola will destroy new entrants. High barriers desist new threats that increase the possibility for its profitable. From these feature, it is clear to see that the market of the Coca cola is like an oligopoly, and it has high HHI, which means Coca-Cola has the dominated market share related to the CDS industry. On the other hand, a major input for soft drinks is sugar, if sugar is expensive, companies can switch to corn syrup. In this sense the suppliers lose bargaining power. Furthermore, direct negotiation by the bottlers limits coke's exposure to sugar price fluctuations, which reduces bottlers' powers further because bottlers need to negotiate sugar prices on their own. Without a doubt, the Bottler is the most important step in coca cola value chain, it help company suffered less negative inference form suppliers and it has limited power by natural. Bottler also become the factor of company core competency.
2.Foreign direct investment (FDI).
As a multinational company Coca-Cola made its overseas investment in servals ways - either by setting up a subsidiary or associate company in the foreign country, by acquiring shares of an overseas company, or through a merger or joint venture. From the recently Coca-Cola Journey, Coca-Cola company decided to invest in Coca-Cola bottling operation around the world which named Bottling Investments Group. Bottling Investments Group not only gives Coca-Cola Company dominate leadership to drive growth in critical markets, but also decrease structural or ownership challenges. Bottling investments Group is focused on the bottler that were to be owned by the Coca-Cola company forever, then Coca-Cola will improve their long-term sustainable growth and manages facilities. Bottling investments Group is committed to win in every market and strives to become a model of collaboration with other bottlers. From now, Bottling Investments Group is in 19 countries and works to maintain a healthy balance of franchise and Company-owned bottlers in the system.
