MANAGEMENT Cola Wars (Coke and Pepsi 2010) Case Study - Week 4 (S42166755) 1. Compare the competitive dynamics of the concentrate business to that of the bottling business? Why is the profitability so different? By using Five Forces Model by Michael Porter‚ it will shows competitive dynamics in the industry. Therefore‚ to define everything further this model will be used to do the comparison between concentrate business (CB) and bottling business (BB). • Barriers to entry‚ based on the case study
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Distribution 9 Profitability Analysis 11 Financial Analyses 12 SWOT and Ansoff Matrix Analyses 12 Where Should Pepsi and Coca-Cola head? 14 Keep status quo price competition and marketing mix? 14 Initiate Price War to enhance profitability while holding the rest of marketing mix? 14 Bottling drinking water‚ should the strategy be the same as CSD? 15 Should Coca-Cola and PepsiCo going in different strategies? 16 Industry Marketing Mix 16 Appendices 20 Figure A1: U.S. Liquid Consumption
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This report is based upon the information from the Harvard business case: “Cola Wars Continue: Coke and Pepsi in the Twenty-First Century”. Both Coca Cola Company and PepsiCo are the largest players in the Carbonated Soft Drinks (CSD) industry. The purpose of this report is to gain insight into the possible strategies that can be applied‚ in order to expand the overall throat share in the future. History revealed that a highly competitive strategy that was utilized in the past by both companies resulted
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• Cola Wars The rivalry between the soda giants‚ also known as the "Cola Wars"‚ began in the 1960’s when Coca-Cola’s dominance was being increasingly challenged by Pepsi Cola... • Cola Wars domestically and abroad (See Exhibit 3) C. Cola industry leaders‚ Coca-Cola and Pepsi‚ should practice game theory to better understand their competitive market... • Cola Wars with the well established brands of Coca-Cola and Pepsi. Organization Due to the cola wars both Coca Cola and Pepsi have a similar
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Cola Wars Case Analysis 1. The main way in which my case notes would be different for Cola Wars if I were to have a second try at writing them would be to include a breakdown of how they are able to apply to Porter’s five forces. For example‚ it is evident after reading this case that the soft drink industry is an extremely profitable one (especially for Coke and Pepsi). The reasons for this were discussed in class‚ and I will quickly explain each: There are great barriers to entry when trying
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WEEK 1 DISCUSSION STRUCTURAL FORCES EFFECTS on COLA DRINKS INDUSTRY SUPPLY CHAIN by GIDAGA ALFRED HOOO31960 ABSTRACT Carbonated soft drinks branded under Coca Cola and Pepsi Cola remain major household names in the soft drinks industry. Spanning operation from the original Franchise agreement of 1899 to-date‚ is an indication of managerial ingenuity of strategy design‚ implementation and control. Profitability and sustainability as a key issue in business operations necessitates these
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rP os t 9-709-451 REV: SEPTEMBER 30‚ 2009 FRANK V. CESPEDES Cola Wars: Goin Global ng op yo By 2008‚ per capita consumption of carbonated soft drinks (CSDs) in the United States had declined in seven of the past ei ht years. Annual consumption of CSDs was 740 eight-ounce drinks ig per person in the U.S. versus 288 in the rest of the developed world and 77 in developing countries.1 As a result‚ the Coca-Cola Co. (Coke) and PepsiCo (Pepsi) increasingly looked abroad for growth
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http://www.dea.unipi.it/staff/e.giuliani/downloads/CocaPepsi.pdf Cola wars continue: coke and pepsi in 2012 $74B carbonated soft drink industry in the US 1975-1990s‚ coke and pepsi both earned average annual revanue growth of around 10%. In 2000‚ us per capita CSD consumption declined. 2009‚ average American drank 46 gallons of CSD per year‚ loest since 1989. Coke suffered from operational setbacks Pepsi charterd new‚ aggressive course in altnerative beverage and snack Challenges Boost
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Cola War Soft drinks are profitable because it is a $60 billion industry in the United States alone. Not only is it profitable in the United States‚ but both Pepsi and Coca-Cola have expanded their franchises internationally and both have become competitive brands. It is estimated that the average American can consume about 53 gallons of carbonated soft drinks a year. According to the article‚ Americans drink more soda than any other beverages on the market today‚ such as sports drinks‚ juices
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Why and how can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-carbonated drinks? The ‘Cola Wars’ have through the years shown the intense competition between Coca-Cola and PepsiCo. While the competition to gain new market share may no longer be as intense‚ the two companies are still fighting to remain relevant with a continued demand of their products. As the U.S. has shown an interest in non-carbonated drinks‚ domestic demand for carbonated
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