Question

Soft drink manufacturers face (a) ________.

A) High threat of substitutes.
B) High bargaining power of suppliers.
C) High threat of new entrants.
D) Low levels of rivalry.
E) High bargaining power of buyers.

Answer 1

The correct answer is (A)

Step-by-step explanation:

Soft drink manufacturing industry faces a high threat of substitutes. Not many soft drink brand exit the market but many new companies and brand enter. Similarly, that is the reason why prices of soft drink do not fluctuate as compare to other food items. The competitive environment in the soft drink industry creates a high threat of substitutes.