...Step Two Step Three Step Four Step Five Step Six Step Seven Conclusion Introduction: Strategy is a core component in business. In order for a business to survive they need to have a good strategy. This portfolio consists of a strategic plan for the product; Jaz cola. Jaz cola is one of the many products of the Coca Cola Company. It will look at the seven steps of strategy formulation for Jaz cola. Step One, Industry Analysis: Jaz cola is a product that coca cola introduced in the Philippines and is mainly targeted in the middle island, the Visayan Islands. Potential Entrants * Cosmos bottling company * Rubicon Drinks Ltd * Boost Drinks Potential Entrants * Cosmos bottling company * Rubicon Drinks Ltd * Boost Drinks Firstly I will look at the drinks industry for the first step; Industry analysis. So I will be using the Porter’s 5 forces model; Buyers * Local stores * Pongko Pongko Market Buyers * Local stores * Pongko Pongko Market Suppliers Suppliers Competitive Rivalry Competitive Rivalry Threat of Entry – High Bargaining Bargaining Power - Low Power - Low Substitutes * Juice * Tea/coffee * Iced Tea * Health drinks Substitutes * Juice * Tea/coffee * Iced Tea * Health drinks Threat of substitutes – High The potential...
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...The Cola Wars Competitive Strategy Introduction Coke and Pepsi have been going to war for over a century. This war has been fought with prices, with taste challenges, and with advertising. Throughout this bottle battle both companies have remained dominant players in the carbonated soft drink industry and have moved beyond their original products into many new areas. Resources The core resources that have allowed Coke and Pepsi to maintain dominance are their brand image and their marketing strategies. Coke has focused on a brand image that relates more to a way of life then to a soft drink. With “Buy the world a Coke” and other such campaigns Coke has strived to position itself in the minds of consumers as a lifestyle choice to choose Coke instead of just a purchase decision. Pepsi has pursued a similar yet differentiated version of Coke’s strategy. “The Pepsi Generation” was an ad campaign aimed at making Pepsi the drink of the next generation. Advertising was trying to position Pepsi as the preferred drink of the youth of America. Pepsi furthered this image as the preferred drink through the Pepsi challenge, a campaign aimed at boosting total soft drink sales as well as allowing the two soda giants to be directly compared. What makes these resources valuable? The large anchor-bottling corporations and the contracts that bind them to Coke and Pepsi are also huge resources. Both companies own large equity stakes in these major bottlers and are able to use this to...
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...Continue: Coke vs. Pepsi in the Twenty-First Century The Soft Drink industry has been assigned as the vehicle for tackling the topic of industry analysis and competitive dynamics. The case covers developments in the soft drink industry through 1993. It describes how the industry evolved into its current structure largely following Coca-Cola’s leadership. What is particularly interesting is determining why the major competitors in the industry have been able to earn above normal returns for close to 100 years, and why the industry is organized the way it is. The case allows us to analyze how the actions and reactions of competitors over time work to create their own industry structure. The case also allows us to examine how prior strategic commitments to particular strategies create competitive positions, which in turn constrain the future competitive moves of firms. Since competitive positioning determines a firm’s long-run performance, we need to thoroughly grasp the essentials of what makes some competitive positions and competitive strategies more viable, and others not, and why. Case Analysis of Cola Wars Continue: Coke vs. Pepsi in the Twenty-First Century 1. Why has the soft drink industry been so profitable? a. Since 1970 consumption grew by an average of 3% b. From 1975 to 1995 both Coke and Pepsi achieve average annual growth of around 10% c. American’s drank more soda than any other beverage d. Head-to-Head Competition between both Coke and Pepsi reinforced brand ...
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...Industry Analysis PepsiCo Justin Baumgartner Cover Letter: To: Mr. Morgan From: Justin Baumgartner Re: Environmental and Industry Analysis – Alternative Beverage Market Recommendations for PepsiCo’s strategy in Alternative Beverages Date: September 19, 2012 Attached you will find my analysis of the alternative beverage markets in 2009. The analysis includes an assessment of the competition in the alternative beverage market using Michael Porter’s Five Competitive Forces framework. I have also identified key drivers for change and key success factors for competing successfully in this market. Using information, I have then provided a set of recommendations for PepsiCo’s future strategy in alternative beverages. Briefly, my analysis of competition in alternative beverages shows the market to be very competitive. The drivers for change that will influence competition in this industry in the future are technology/globalization and changing in societal concerns, attitudes, and lifestyles. The key success factors that all firms competing in this market must be addressed are product differentiation, size of their organizations, and brand loyalty. This analysis suggests my recommendation to you regarding PepsiCo’s strategy to be brand loyalty, globalization, and product innovation. I hope you will find this information to be valuable to your firm and I thank you for the opportunity to provide this service. Alternative Beverage Industry Analysis: The...
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...PROJECT PLAN Competitive Advantage of the Coca Cola Company: Porter’s Competitive Force Model and the Business Value Chain Model This plan outlines the Competitive Advantage of Coca Cola Company regarding Porter’s Competitive Force Model and the Business Information Value chain. The purpose of the plan is to provide the general view of the firm, its competitors, and the environment it operates. The five competitive forces of Porters model shape the fate of the firm through; Customers and suppliers, substitute products and services, traditional competitors, and new market entrants. This project plan will take up to 4 week, using Porter’s Competitive Force Model to identify the firm’s competitive forces and highlight specific activities in the business where competitive strategies can best be applied and where information technology helps and the impact it brings to the company competitive position. PROJECT SCHEDULE Task: Management Information System Project Duration: Four (4) Weeks Due Date | Day | Time | Job Specification | Lecture’s Approval | Comment | O9/10/15 | Friday | 11 am | Introduction and Background of the company | …………..Date: | | 16/10/15 | Friday | 11 am | Industrial Analysis: * Porter’s Five Forces Model * Business Value Chain | …………….Date: | | 23/10/15 | Friday | 11 am | Firms Competitive ForcesExternal Environment * Strength WeaknessInternal Environment * Opportunity & Threats | …………..Date: | | 30/10/15 | Friday | 11 am...
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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 in a ‘Nash Equilibrium’. Because of this, the report is described from the perspective of both Coca-Cola and Pepsi. The scope of this report covers not only on the increase of overall market share, but also finding new opportunities in unrevealed markets. The analysis is also based upon the eight key concept model. In addition the PEST-analysis and the five forces model of Porter is also utilized to gain insight into the ‘macro-environment’ and ‘meso-environment’ 1. Analysis The eight key concepts analysis is applied to identify the key issues with regard to both Coca-Cola and Pepsi. The outcome of the analysis is utilized to establish the new strategy for both companies. The key issues for each concept are described in this paragraph. Direction The mission and vision of the two companies, described in the case, differ on one major issue. The Coca-Cola Company direction limits its market to a product portfolio of beverage brands, whereas PepsiCo does not only focus...
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...Carbonated Soft Drink Industry Analysis A framework, known as the five forces model, was created by Michael E. Porter to assist managers with identifying opportunities and threats within an industry by analyzing the competitive forces. His five forces consist of: the risk of entry by potential competitors, the intensity of rivalry among established companies within an industry, the bargaining power of buyers, the bargaining power of suppliers, and the closeness of substitutes to an industry’s products. The Carbonated Soft Drink (CSD) Industry will be thoroughly analyzed using Porter’s Five Forces. Risk of Entry by Potential Competitors With high barriers to entry, the risk of potential competitors entering into the CSD industry is low. The high cost of developing a manufacturing plant in order to meet demand is a barrier that makes the risk of entry low. Coke and Pepsi have spent numerous amounts of money to gain the brand loyalty of their customers. Because brand loyalty is already established in the CSD industry, the risk of competitors entering is lowered. Due to brand loyalty, both Coke and Pepsi have a high demand for their products. Both companies are able to produce in mass quantities and lower the variable cost for each product. With the variable cost being lowered, they are able to lower their selling price. Another barrier that lowers the risk of entry is franchise agreements that Coke and Pepsi have made with their bottlers. The agreements state that...
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... Using Porter’s Five-Factor Model of Market Profitability (Aaker, p. 67), explain why the major concentrate producers have historically been so profitable. Soft drink industry is very profitable, more so for the concentrate producers than the bottler’s. This is surprising considering the fact that product sold is a commodity which can even be produced easily. There are several reasons for this, using the Porter’s five forces model of market profitability analysis we can clearly demonstrate how each force contributes the profitability of the industry. (Goutham Vulpala, Laxmi, 2007) Barriers to Entry: The several factors that make it very difficult for the competition to enter the soft drink market include: • Bottling Network: Both Coke and PepsiCo have franchisee agreements with their existing bottlers who have rights in a certain geographic area in perpetuity. These agreements prohibit bottler’s from taking on new competing brands for similar products. Also with the recent consolidation among the bottler’s and the backward integration with both Coke and Pepsi buying significant percent of bottling companies, it is very difficult for a firm entering to find bottler’s willing to distribute their product.(Goutham,2007) . • Advertising Spend: The advertising and marketing spend (Case Exhibit 5 & 6) in the industry is in 2000 was around $ 2.6 billion (0.40 per case * 6.6 billion cases) mainly by Coke, Pepsi and their bottler’s. The average...
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...Prepare a market research plan to obtain information in a given company 19 Task 3 22 Assess market size trends for a chosen target market 23 Plan and carry out a competitor analysis on a rival 24 Evaluate organization's opportunities and threats 27 Task 4 30 Evaluate various techniques of assessing you customers responses 31 Design and complete a customers satisfaction survey 32 Review the success of a completed survey 31 Appendix 34 References 36 Task 1 Task 1 (Outcome 1) a. Describe the main stages of the purchase decision-making process within your chosen company * Refreshing drink is the basic human’s demand. Therefore, it is understandable when people expect to have a comfort drink to satisfy thirst. In Vietnam, Pepsi and Coca Cola took large amount of market share in beverage industry, applying consumer buyer decision process will help them a part in purchasing battle. * As usual buying decision process will cover through 5 steps. However, buying Pepsi does not need that much. Before any purchasing decision was make, the need awareness definitely appear first. Commonly, people will drink Pepsi when thirsty, be invited, habitual, etc (need recognition). They will totally ignore “Information search” because it not necessary for a common thing like a can of Pepsi. Which cost small amount of money and the demand will...
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...invented in 1886 by John Pemberton as a “potion for mental and physical disorders.” Asa Candler acquired the formula and began marketing it as Coca-Cola. The first bottling franchise was accorded in 1899 for a sum of one dollar. Pepsi-Cola was invented in 1893 by Caleb Bradham a pharmacist from North Carolina. Pepsi also franchised its bottling operations. Pepsi struggled over the years going bankrupt twice within a decade, first in 1923 and again in 1931. Pepsi competed aggressively against coke offering almost twice the amount of Pepsi for the same price in the 1930s. Coca –Cola or Coke on the other hand was the market leader through the early 20th century with numerous imitators popping up trying to clone Coke. Coke fought back in the courts to aggressively deter imitators and counterfeiters. During the 1920s and 1930s, Coke was marketed to multiple market segments making it available to anyone desiring the brand. Eventually Coke sued Pepsi for trademark infringement in 1938 and lost. Pepsi gained market share and became a titan competitor in the market for CSDs beating out all other brands except Coke. Thus began the “Cola Wars” in 1950 with Pepsi’s aggressive “beat Coke” strategy. For the last quarter of the 20th century both Coke and Pepsi mustered annual growth of 10%. By the turn of the 21st century US consumption of CDS began to drop; at the same time there were many new entrants and differentiated competitors in the hotly contested drink markets. Strategy...
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...Porter’s Five Forces Analysis of the Fast Food Industry Complete a Porter's Five Forces Analysis of the fast food industry and for each of the 4 generic strategies, identify one restaurant that you believe is employing that generic strategy. According to Hoover's Fast Food and Quickservice Restaurant Report, Fast food restaurants make up one of the largest food industry segments with more than 200,000 restaurants in the US. Fast food franchises are known for their low cost and high-speed products served to go as well as for a quick on-site consumption. Consumers are attracted to the idea of standardized menus and familiar meals in each location. Michael Porter’s model discussed below will help us identify five key competitive forces to analyze the fast food industry environment. The threat of entrants - High Entry barriers into the fast food industry seem to be low because of the relatively low capital requirements to start a new restaurant. New entrants are not in need to possess proprietary technology to be able to compete with already established restaurants or franchises. However, the fast food industry is dominated by globally recognized chains with high brand awareness and brand loyalty like McDonald’s, Burger King, KFC, Pizza Hut and etc. Established fast food restaurants have numerous advantages in product technologies, easy access to ingredients and supplies, favorable locations, successful marketing, and experience. While these disadvantages can seem as a significant...
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...Business Model and Strategic Plan III, Balance Scorecard and Communication Plan Abstract This paper discussed issues and strategies of implementing a Balanced Scorecard in order to facilitate strategic planning in PepsiCo’s Mountain Dew Energy drink company KickStart. PepsiCo has been using the Balanced Scorecard in order to manage its performance measures for the implementing of the Balanced Scorecard to try and select the appropriate performance measures for the area’s listed below; • Growth in developing in the Energy drink new product and emerging markets • Financial perspective---how do we look to stakeholders • Customer perspective---how do our customers se us? • Internal business processes—what must we excel at? • Innovation and learning----how can we continue to improve and create value? Other challenges include collecting the desired information and systematizing its production analysis. Understanding what the customer wants and getting feed back on the flavors, the taste, and the coconut waters affect on the healthier side of the choice. Background and Context PepsiCo’s sister brand Mountain dew has created an off brand for young coffee drinkers of America called Millennia’s. The Challenges of implementing performance for the new product taste is going to be difficult without getting the target audience approval. PepsiCo’s motto is to make sure when it introduces a new product it is consistent with “The performance with Purpose”. The performance...
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...managers use social intelligence to define the future of the business, analyzing markets, industries and economies to determine the strategic direction the company must follow to remain unprofitable. True False 6. A variable is a business intelligence characteristic that stands for a value that cannot change over time. True False 7. Companies update business strategies continuously as internal and external environments change. True False 8. For an organization to succeed, every department or functional area must work independently to be most effective. True False 9. Porter's Five Forces Model outlines the process for a sales strategy. True False 10. With the Five Forces Model, companies should watch the forces in the market. If the forces are strong competition generally increases and if the forces are weak competition typically decreases. True False 11. Successful companies today operate cross-functionally, integrating the operations of all departments. True False 12. An overview of systems...
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...its fullest potential. I am forever grateful and thank them from the bottom of my heart. I would like to particularly thank my mentor Ms. Simerjeet who I think was a huge guiding force in completing this thesis. She helped me in choosing the right topic for my thesis which is interesting and would be useful also while I will be working in an organization. Judging by the quote below, I have to think that the above-mentioned are overflowing with happiness. “In about the same degree as you are helpful, you will be happy”. Karl Reiland CHAPTER 1 - INTRODUCTION “The most...
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...Continued: Coke versus Pepsi in the Twenty-First Century Intro: Syllabus Page 16 The Soft Drink industry has been assigned as the vehicle for tackling the topic of industry analysis and competitive dynamics. The case covers developments in the soft drink industry through 1993. It describes how the industry evolved into its current structure largely following Coca-Cola’s leadership. What is particularly interesting is determining why the major competitors in the industry have been able to earn above normal returns for close to 100 years, and why the industry is organized the way it is. The case allows us to analyze how the actions and reactions of competitors over time work to create their own industry structure. The case also allows us to examine how prior strategic commitments to particular strategies create competitive positions, which in turn constrain the future competitive moves of firms. Since competitive positioning determines a firm’s long-run performance, we need to thoroughly grasp the essentials of what makes some competitive positions and competitive strategies more viable, and others not, and why. Discussion Questions: 1. 2. 3. Why has the soft drink industry been so profitable? a. Since 1970 consumption grew by an average of 3% b. From 1975 to 1995 both Coke and Pepsi achieve average annual growth of around 10% c. American’s drank more soda than any other beverage d. Head-to-Head Competition between both Coke and Pepsi reinforced brand ...
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