Automatic Vending Machine Industry Analysis
David G. Johnson
Innovativeness, customization, and expediency is what defines the Automatic Vending Machine Industry, SIC 3581 / NAICS 333311. Besides the industry’s recent minor decline prior to the new millennium, the industry has surely seen prospective growth exceeding 10% since.2 With the steady emergence of fast-paced societies, everyone is becoming “…crushed for time…” which is creating a demand of convenience to “…take the store to where the people are.”24 Convenience stores aren’t good enough anymore – people want their products exactly when and how they want them.
The Industry’s four major competitors are Coca-Cola Co., Pepsi Co. Inc., Mars Inc., and Nestle, respectively, which own approximately 42.3% of the market share collectively.2 At the head of the competition are the arch rivals Coca-Cola Co. and Pepsi Co. Inc. who are continually re-adapting their tactics in the industry to gain a larger market share. Coca-Cola Co.’s main competitive advantage lies within its size, where Pepsi Co. Inc.’s lies within its variety of product offerings.3, 7
Technological advancement is allowing the Automatic Vending Machine Industry to erupt with more convenient vending machines by serving the customer with cashless options for an abundant range of products and services ranging from candy bars and DVDs to even the charging of cell phones. Technology is also allowing th