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Carbonated Drink War - Case Analysis

In: Business and Management

Submitted By tejasrai
Words 1482
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“Cola Wars – Sustaining Competitive Struggle”
I. Key Problem
In the current business world the competition is very stiff. Major organizations are stressing on every possible resources to meet continuing rising demands of market and consumers. The prime aim for the current organizations is to render best services to their customers and increasing the market share. The current globalization scenario also provides ample opportunity for an organization to interact and present them globally. The integration with global economies allows them to sell their product and services on global platform. This also brings modernization and industrialization.
Coca-Cola was established in 1886 originally as a coca wine to serve as “potion for mental and physical disorders”. In year 1891 the brand advertisement for Coca-Cola was developed and went in market / broad consumer range under established sales force. By leveraging and pushing the pool of bottlers under them, the company went public and emphasized on the opportunity to put the beverage “in arm’s reach of desire”. To fulfill their desire to top the world as leading beverage suppliers, they won 4 of the world’s top 5 nonalcoholic beverage brands and they have setup operations in more than 200 countries all over the world with a strong portfolio of more than 2,800 products in these countries.
On the hand, Pepsi Cola was founded in 1893. Following footsteps of coke, Pepsi also adopted franchise bottling system. Overcoming financial and legal hurdles around 1940’s Pepsi became second largest selling carbonated soft drink brand. In 1965 PepsiCo was formed through the merger of Pepsi and snack food giant Frito-Lay to exploit the non-CSD industries. With further successful merger and acquisitions with small and medium scale industries like Tropicana, Quaker Oats to name some they became world’s fifth largest food and beverage...

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