The Carbonated Soft Drink Industry

The carbonated soft drinks (CSD) industry in the United State is considered to be in its maturity phase and there is a high degree of competition within the industry . There are several producers of carbonated soft drinks; however, our focus is on the top three soft drink producers : Coca-Cola (NYSE:KO) and PepsiCo (NYSE:PEP) and Dr. Pepper Snapple Group (NYSE:DPS) as they account for 41.9 percent, 30.3 percent and 14.8 percent of CSDs market share respectively, according to IBISWorld (Graph 1).

This is a case analysis of the carbonated soft drink industry for Management 400. First, to set our boundaries of the industry, I will set the boundaries of the carbonated soft drink industry. The carbonated soft drink industries are companies that are in the production of soda products, sports drinks, and energy drinks. The production and distribution of carbonated soda drinks can be broken down into four separate sections: concentrate producers, bottlers, retail channels, and suppliers. The first

This essay presents the carbonated soft drinks in the worldwide soft drink market, and Coca-Cola and Pepsi Co, the two companies that have been competing and fighting to control profits and market share in this segment. First, this essay explains the reasons that the carbonated soft drink industry is so profitable and lucrative. Second, this essay compares the economics of the concentrate business to the bottling business, and explains the reasons that the profitability metrics are different. Third

A Comparison of the Carbonated Soft Drink, Ready-to-Eat Breakfast Cereal and Specialty Coffee Industries Using Porters Five Forces Michael Porter’s framework describes an industry as being influenced by five forces: buyer power, supplier power, threat of substitutes, threat of new entrants and the degree of rivalry between existing firms within the industry. A strategic business manager can use Porter’s model to more clearly understand the industry environment in which its firm operates and to

Industry Background SIC and NAICS An industry as complex as the Food and Non-Alcoholic beverages industry must be coded by organizing smaller sub-categories when referencing the Standard Industrial Classification (SIC) system and the North American Industry Classification System (NAICS). These systems categorize industries using codes to aid in analytical research for Federal statistical agencies. (United States Census Bureau, 2012). A quick search using key words or the actual code will allow the

the competitors. Every organization, for profit or non-profit primary purpose is to accomplish the mission and vision of the organization. Soda Stream is a for profit oriented organization, its main purpose is to generate profit by providing soda drinks maker machine, gas

of Phoenix 4/26/2008 Market Structure of the Carbonated Drinks Industry The carbonated drink industry is a very extensive worldwide and has also encouraged an increase in similar industries such as the packaging field that handles the production of cans, glass, and plastic bottles for example, and at the same time is generating significant revenue for additional service industries like advertising. The carbonated drink industry consists of the raw material retailers and providers

Porter’s Five Forces can be used to analyze the carbonated soft drink industry in the United States. The first force is the threat of new entrants. Essentially, this is an analysis of the level of difficulty and number of challenges for new businesses to enter the market. The second force is the threat of substitutes. This is a detailed description of potential substitutes for the products in the industry. The third force is the bargaining power of suppliers. This analysis shows the amount

Introduction: In the United States, The Soft Drink Manufacturing and carbonated beverages market is dominated by three major companies. They are Coca-Cola, PepsiCo, and the Dr. Pepper Snapple Group. These companies account for 66% of the total market shares Coca-Cola (28.6%), Pepsi Co Inc (26.8%), and the Dr. Pepper Snapple Group (8.6%). The carbonated soft drinks account for 65%, and noncarbonated beverages account for 35% of the industry market. The demand for soft drinks is driven by consumer tastes

last century, Coke and Pepsi have been waging war over the $74 billion carbonated soft drink industry in the United States. The degree of this competition has changed over the last decade as carbonated soft drink (CSD) consumption in America decreased to 46 gallons per year per person. To investigate these changes and evaluate the reasons why the industry has been so successful over the years, it is important to do an industry analysis looking at the different forces that affect both Coke and Pepsi