The Pepsi Of Coca Cola

1789 WordsOct 13, 20158 Pages
INTRODUCTION Doctor John Pemberton a pharmacist from Atlanta, invented the Coca Cola formula in a three legged brass kettle in his home. At that moment Coca Cola was invented Coca-Cola and Pepsi the arched enemies is legendary. While the competition continued with the Pepsi Challenge in 1975 ; which prompted Coca-Cola 's horrific New Coke debacle ; the these two corporations have been fighting for more than a century. Earlier this year, Pepsi went after Coke 's famed mascots, the polar bears and Santa. This dispute as gone so far as to going into the internet would of social media. The soft drink engineering has been a profitable one in spite of the “cola wars” between the two largest players. There are a lot of factors that promote to…show more content…
Accommodating approximately 200 counties with a diverse product range consisting of an astounding 500 brands and 3,300+ beverages, the company considers the “Coca-Cola” name itself worth billions of dollars. Forfending its brand image and reputation, therefore, is a key priority for Coca-Cola management. Cokes mission is stated merely as “At the Coca-Cola Company, we strive to refresh the world, inspire moments of hopefulness and happiness, create value and make a difference”. (cocacola.com) Key questions Profitability: Historically, why has the soft drink industry been so profitable? Soft drink trade is very remuneratively lucrative, more so for the concentrate engenderers than the bottler’s. This is surprising considering the fact that product sold is a commodity which can even be engendered facilely. There are several reasons for this, utilizing the five forces analysis we can limpidly demonstrate how each force contributes the profitability of the industry. As observation using Porters five forces shows why the soft drink industry has been so profitable. Suppliers and buyers have not had more power over the industry than it has had over them. Internal rivalry, while seeming intense, has not eroded the profitability of the industry due to its concentration and the fact that the two major players have
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