Survey of Arts Management

Course blog for American University PERF-570, Fall 2014

Porter’s Five Forces In Action: Sample Analysis of Coca-Cola

Out of curiosity, I wanted to find out more information about Ximena’s lecture on Porter’s Five Forces and the Blue Ocean Strategy. I found a short case study of Coca-Cola’s usage of the Five Forces and found this intriguing. This relates to arts management because as we begin to transition into arts managers, we must know everything about our market and how we can keep our organization competitive and relevant, in hopes of eliminating (or collaborating) with other organizations.

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3 comments on “Porter’s Five Forces In Action: Sample Analysis of Coca-Cola

  1. sobashhere
    October 2, 2014

    It’s fascinating to look at this analysis regarding a commercial for profit company. I find most intriguing their consideration of substitutes and the bargaining power of buyers. First, their substitutes are on the verge of being a high pressure threat because the product is admittedly not unique. It is said in a blind taste test people will not know Coca-Cola from Pepsi. The company relies on how strong the brand is and the loyalty of its consumers to the brand. Who needs to have innovative products when you’ve built up your brand to such great heights?! Large retailers who buy the product in bulk are their biggest threats in bargaining power, but not to worry, this threat can too be easily destroyed by their consumer brand loyalty. Moral of the story…foster your brand.

  2. gaochang619
    October 3, 2014

    I agree with Samantha and have got a supplement in the art world. This article reminds me of an arts related article. In the first paragraph the author said:”What factors drive decisions between the art world’s versions of Coca Cola and Pepsi? What do they sacrifice in order to win big consignments? I’m talking, of course, about Christie’s and Sotheby’s, which are increasingly on separate business tracks. ” The top two auction houses have build up strong brand images and reputations just like Coca-Cola and Pepsi. One point that may be a relief to art organizations is the distinctive character of each art work,which reduce the stressful competition among art marketplace. However, as to maybes and noes, the distinction is not that clear. Therefore it is important for art organizations to be distinctive themselves more than pieces of art works. Position clearly, strengthen a unique brand awareness, especially for smaller art organizations.

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