Cola wars

Cola Wars Case Study Executive Summary: The Cola wars between the two soft drink giants Coca Cola and Pepsi has been perpetual for over a 100 years. The t   Key marketing issue: With The decline of sales in the CSD highly competitive market and the increased popularity of non CSDs, the two CSD giants Coca Cola and Pepsi are facing challenges to adapt to the new market and maintain their profitability and expansion in the US and worldwide. SWOT Analysis: Concentrators (Coca Cola & Pepsi) Bottlers

9-711-462 REV: MAY 26, 2011 DAVID B. YOFFIE RENEE KIM Cola Wars Conti inue: Coke an Peps in 201 C nd si 10 Fo more than a century, Co and Pepsi vied for “th or oke hroat share” o the world’s beverage m of s market. The most intense battles in the so-called col wars were fought over the $74 billio carbonated soft m b la e on drink (CSD) indus stry in the Un nited States.1 In a “carefu ully waged co ompetitive str ruggle” that l lasted from 1975 through the mid-199

controlled by Coca-Cola Company (Coca-Cola) and PepsiCo (Pepsi), together claiming a combined 72% of the U.S. carbonated soft drink (CSD) market sales volume in 2009. Refer to Exhibit 1 for an illustration of the CSD industry value chain. For more than a century, Coca-Cola and Pepsi have maintained growth and large market shares through mastering five competitive forces, shown in Exhibit 2, that drive profitability and shape the industry structure. Entry Barriers: Both Coca-Cola and Pepsi have strong

Cola Wars Continue: Coke and Pepsi in 2010 A case discussion note January 17, 2012 1. Historically, why has the soft drink industry been so profitable? Historically, the soft carbonated soft drink (CSD) industry has been valued at $74 billion in the United States. In order to understand the reasons why the industry has been hugely profitable despite the ‘Cola Wars’, an examination of the CSD industry with Porter’s five forces analysis will be conducted. As market leaders, the analysis will be

organizations profitability as compared to its competitors in the same industry by looking at 5 forces of stress. Coca-Cola deals with a lot of pressure in the concentrate business, most specifically with Pepsi. I will analyze the 5 forces model to determine Coca-Colas overall profitability. The 5 forces model begins by looking at rivalry between established competitors. Coca-Cola has a direct rivalry with Pepsi in the fact that they make and distribute an almost identical product used for the same

"Cola Wars Continue: Coke and Pepsi in 2010" Read and Apply: Michael E. Porter (2008), “The Five Competitive Forces that Shape Strategy”, Harvard Business Review, (January 2008), pp. 2-17 Assignment Questions (AQ) (a) Why has the soft drink industry been so profitable for concentrate producers? Compare the economics of the concentrate business to the bottling business: why is the profitability so different? [50% points] The soft drink industry has been extremely profitable for Concentrate

Assignment 3 Tuesday, February 19, 2013 12:08 AM   Cola Wars   1. Why is the soft drink Industry so profitable? * Using Porter's Five Forces reveals that market forces are favorable for profitability   * Defining the industry: * The industry consists of two major dependents, that is, the "Concentrate Producers" and the Bottling Companies. * High barriers to Entry. * Profits shared between "CP" and Bottling Companies/   * Rivalry: * Concentrated

Coca-Cola vs. Pepsi Cola: The Cola Wars Jennifer Guzick Indiana Wesleyan University “When it comes to the king of pop, only Michael Jackson tops Coca-Cola. The soda giant is one of the most recognizable companies in the world, with annual sales north of $45 billion” (Tamara Walsh, TMFSocialME). For years, there has been a “cola war” between Coca-Cola and Pepsi Cola. This has urged cola drinkers to test these two products and compare them in many different areas. Coca-Cola and Pepsi Cola

Cola Wars Continue: Coke and Pepsi in 2006 other beverage. Within the CSD category, the cola segment maintained its dominance, alihough its market share dropped from 71% n 1990 to 60% in 2004.5 Non-cola CSDs included lemon/lime, citrus, pepper-type, olange, root beer, and other flavors. CSDs consisted of a flavor base (called "concentrate"), a sweetener, and carbonated water. The production and distribution of CSDs involved four major participants: concentrate producers, bottlers, retail drannels

Question 1 The concentration producing industry has one buyer and through its value chain. Instead, costs for advertising, promotion, market research, and bottler relations were significant. On the other hand, bottling industry is the mid-way player in the soft drink industry. There are two suppliers and one buyer involved in its value chain (Exhibit 1). Whether two industries are profitable depends on soft drink consumption, which had increased for more than 20 years and plateaued in the 1990s