Answer:
The barriers to entry are high, and therefore the threat of entry is categorized as a high risk in the industry.
The value -chain activity of the soft drinks journey to the customer is centred on four functions: Production, marketing, packaging and distribution. new entrants need to excel in all areas if they are to survive in this global village. The capital requirements within this industry are very high. Production, distribution and advertising are a must to compete with the industry leaders like Coca Cola and Pepsi Co. the incumbent will face a dilemma; come in at large scale and risk strong reaction from existing firms or come in at a small scale and accept a cost disadvantage thus there will be failed economies of scale. This is a high barrier because there is a need to invest large financial resources in order to compete. Capital is necessary for inventories, credit, and absorbing start-up/production losses.
then there is brand loyalty and shelf space allocation by distributors