File Name: cola wars continue coke and pepsi in 2010 case .zip
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This case explains the economics of the soft drink industry and its relation with profits, taking into account all stages of the value chain of the soft drink industry. It focuses on the war between Coca-Cola and Pepsi as they are the market leaders in this industry. The case study analyses the different stages of the value chain concentrate producers, bottlers, retail channels, suppliers and the impact of the modern times and globalization on competition and interaction in the industry.
The "Cola Wars Continue: Coke and Pepsi in " case study re-examines the competitive environment between Coca-Cola and Pepsi over a period of a century. It discusses the rivalry between the two biggest manufacturers and suppliers of carbonated soft drinks CSD. It presents the strategies of both companies amidst the decline in the consumption rate of CSDs. Case study questions answered in the first solution:. Not the questions you were looking for?
When launched, Coca-Cola's two key ingredients were cocaine from the coca leaf and caffeine from the kola nut. Pepsi was named after the digestive enzyme pepsin used in the original recipe, which also included kola nuts, sugar and vanilla. Both Pepsi and Coca-Cola recipes are now trade secrets. Coca-Cola famously changed its recipe in which prompted an outcry. Starting in the late s, the two companies faced new challenges with a decline in the sale of fizzy drinks and health fears over sugary drinks.
Examines the industry structure and competitive strategy of Coca-Cola and Pepsi over years of rivalry. The most intense battles of the cola wars were fought.
We are focusing on Pepsi, which is a carbonated soft drink produced and manufactured by PepsiCo. PepsiCo Inc. PepsiCo is an American multinational company which also manufactures snacks, food.
In order to understand the strategic issues of the concentrate manufacturers in the US market, an analysis of the CSD industry structure appears necessary. The model of Porter is an outside-in business unit strategy tool that analyses the attractiveness value of an industry structure, capturing the key elements of industry competition. This framework is a tool for identifying, tracking, projecting and assessing macro-environmental trends and patterns which helps decision-making and to plan for future events. Wal-Mart posing a new threat to profitability for Coke, Pepsi and their bottlers.
Ever since then, the CSD industry has been dominated by these two companies, with Coke taking the lead in the early stage, followed by Pepsi doubled its market share between and by offering its concentrate at a lower price than its competitor. The CSD industry has been profitable historically due to numerous reasons. In terms of concentrate producers, the manufacture process involves little fixed costs and capital investments. This ensures high level of gross margin for them and frees up funds for marketing related expenditures. For bottlers, even though heavy capital investments and fixed costs limit their profitability, they often receive financial assistance and incentives from concentrate producers, and are awarded exclusive territory distribution rights that limit intra-brand competition. The profitable aspect of the CSD industry came to a slow corner in late s, as consumers became more health-sensitive, while nutrition organizations claimed that CSD products was the main cause of the American diet. Demand for CSD beverages started to diminish, although it still remained the most consumed beverage type in America.
The 'Cola Wars Continue: Coke and Pepsi in ' case examines the industry structure and competitive strategy of Coca-Cola and Pepsi over years of rivalry. However, starting in the late s, U.
s case, “Cola Wars Cola Wars Continue: Coke and Pepsi in 2 In the case of Coke, territorial rights did not extend to national fountain colacompany.com/investors/pdfs/investor_relations_hondapeople.org, accessed OctoberReply
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The 'Cola Wars Continue: Coke and Pepsi in ' case examines the industry structure and competitive strategy of Coca-Cola and Pepsi over years of.Reply
Case Study: "Cola Wars Continue" from Harvard Business Review (Group VS Cola Wars Continue: Coke andPepsi in Marketing Strategy – Jim Prost 4Ps Analysis 6 PRODUCT • Carbonated soft drinks • Non-.Reply