Coca-Cola and the Nutrition Bar Industry

Paper Summary:

The paper focuses on three of the five forces described in Porter's five forces model, entry, supplier power and buyer power, in order to evaluate Coca-Cola's entry into the nutrition bar industry. The paper provides a description of this industry and shows how the company may have some barriers to entry related to patents and proprietary knowledge, asset specificity and minimum efficiency scale. The paper also relates that the power of buyers in this industry is significant unlike the power of the suppliers. The paper concludes that the nutrition bar industry has grown significantly and Coca-Cola may experience some profitability in this industry if it employs suitable strategies.

Outline:
Introduction
Nutrition Bar Industry
Entry into the Nutrition Bar Industry
Supplier Power in the Nutrition Bar Industry
Buyer Power in the Nutrition Bar Industry
Conclusion

From the Paper:

"The industry contains several segments including meal replacements, energy beverages and protein powders ("Energy and Nutrition Bars: Invigorating The Sports Nutrition Industry"). One article reports that the sports nutrition industry, made nearly $2 billion in 2003 sales, this was and increase of 13 percent from 2002 (Higgins). The article further explains that companies have been able to increase the sell of nutrition bars by improving the taste. In the past, nutrition bars had a chalky taste that was unappealing (Higgins). Today nutrition bars taste more like deserts and tend to come in fruit or chocolate (Higgins). In addition, companies have changed the manner in which these products are marketed, by advertising to a broader audience (Higgins)."

Sample of Sources Used:

• "Energy and Nutrition Bars: Invigorating The Sports Nutrition Industry" , 2004). http://www.frost.com/prod/servlet/market-insight-top.pag?docid=10842468
• The Coca Cola Company. http://www.thecocacolacompany.com
• Higgins M. (February 18, 2005) Energy Bars Not Just for Athletes; Industry Targets 'Couch Potatoes'. Newspaper Title: The Washington Times. Publication Date:. Page Number: C09
• Porters Five Forces. http://www.quickmba.com/strategy/porter.shtml

More papers on Coca-Cola and the Nutrition Bar Industry:

• Research Paper # 132782 : "Coca-Cola and Pepsi, and the Impact of American Culture"
• Term Paper # 97150 : "Coca-Cola and ANZ Bank"
• Case Study # 4488 : "Coca-Cola: Is the Fizz Still There?"

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