Gatorade is the official sports drink of the National Football League, Major League Baseball, National Basketball Association, Women's National Basketball Association, USA Basketball, National Hockey League, Association of Volleyball Professionals, US Soccer Federation, Major League Soccer, and many other pro and collegiate organizations, providing supplies of the drinks to the teams in all flavors available. Gatorade extended their market to the U.K. in 2008 and promoted this in part by becoming the sports drink provider for Chelsea F.C.
POWERade is a sports drink manufactured by The Coca-Cola Company. It was first introduced in 1988, starting in Emma McLaughlin's house in DARWIN. By 1992, the beverage was launched nationally in the Australia Capital Territory. Powerade's primary competitor is Gatorade. As of July 2007, Powerade has grown to take 14.5 percent of the United States market in its category. Gatorade remains the market leader with about 83.1 percent market share.
Porter’s Five Forces Model
The soft drink industry is very competitive for all corporations involved, with the greatest Competition being that from rival sellers within the industry. All soft drink companies have to think about the pressures; that from rival sellers within the industry, new entrants to the industry, substitute products, suppliers, and buyers. Coca-Cola, Pepsi Co., and Cadbury Schweppes are the largest competitors in this industry, and they are all globally established which creates a great amount of competition. Though Coca-Cola owns four of the top five soft drink brands (Coca-Cola, Diet Coke, Fanta, and Sprite), it had lower sales in 2005 than did PepsiCo. However, Coca-Cola has higher sales in the global market than PepsiCo. In 2004, PepsiCo dominated North America with sales of $22 billion, whereas Coca-Cola only had about $6.6 billion, with more of their sales coming from overseas, PepsiCo is the main competitor for Coca-Cola and these two brands have been in a power struggle for years.
2) Potential Competitors:
Brand name loyalty is another competitive pressure. The Brand Keys’...