COLA WARS CONTINUE COKE and PEPSI IN 2006 Adityo Wibowo (10 / 310520 / PEK / 15397) Yohan Suryanto P (10 / 310533 / PEK / 15410) Muhammad Jusuf (26E1024) MAGISTER OF BUSINESS ADMINISTRATION FACULTY OF ECONOMICS AND BUSINESS GADJAH MADA UNIVERSITY 2010 PROFIL PERUSAHAAN Pada 8 Mei 1886, Dr.John Stith Pemberton, ahli farmasi berkebangsaan Amerika mencampurkan jenis sirup, obat elixir, French Wine of Coca, Bordeaux, kokain dan kafein (yang berasal dari biji kola). Ramuan itu adalah
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Cola War Continue: Coke and Pepsi in 2010 1. Over the century the CSD industry has its dominance in the non-alcoholic beverage market. The basic structure of the CSD industry is based on production and distribution, involving four participants: concentrate producers, bottlers, retail channels and suppliers. The concentrated manufacturing process requires a small capital investment for machinery, overhead and labor. They blend raw material ingredients, packaged the mixture and ships to bottlers
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Cola Wars Continue Description: The competition between Coke and Pepsi is a classic corporate battle, which began in America at the turn of the century and has expanded into worldwide competitive warfare in the 21st century. We will use the case to examine competition and strategy in the carbonated soft drink industry. 1. Why has the carbonated soft drink (CSD) concentrate industry been so profitable for Coke and Pepsi over many decades? * Soft drinks industries have so profitable because
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Li Jiang, Bus 478 Student Date: January 11th, 2016 ------------------------------------------------- Subject: Cola War Continues: Coke and Pepsi in 2010 Coke and Pepsi have duopoly the soft drink market for decades. It is a mature market with low growth. For all the years, Coca-Cola and Pepsi have built significant brand identity. When people thinking about buying cola, they cannot tell a third brand’s name. Both of them have built mature distribution channels and their large sales volume
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Cola Wars Continue: Coke and Pepsi in 2006 Question: Identify the key marketing issues (Company weakness and the main opportunities and threats for company) met by Coke and Pepsi. SWOT | Cola | Pepsi | Strengths | * The flagship of soft drink global market share, approximately 40% * High profit margin by shifting some cost to bottlers * Strong marketing campaign * Expanded manufacturing and distribution system that kept prices low, Coke located in more than 200 countries. | *
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In the “Cola Wars Continue: Coke and Pepsi in 2010” the history of Carbonated Soft Drinks (CSD) and its development in modern society illustrates how these two companies advance and compete within an oligopoly market. One of the approaches used in oligopolies is the Game Theory Approach. The basic elements of game theory are (1) the players, (2) the strategies available for each, and (3) the payoff each receives. There are different “battlefields” on which Coke and Pepsi compete: products, pricing
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Cola War Continue: Coke and Pepsi in 2010 The following characteristics are important to conclude the competitive intensity and attractiveness of the CSD industry: the threat of substitute products, the threat of established rivals, the threat of new entrants, the bargaining power of suppliers and the bargaining power of buyers. First, the threat of substitute products such as sports drinks, juice and bottled water is relatively high to the CSD industry due to the shift in consumption patterns
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Cola Wars Continue: Coke and Pepsi in 2010 Report prepared by Bruno Arnaud Executive Summary Coke and Pepsi have competed for more than a century for the world’s beverage market share. In all this time they have executed many different strategies and taken various decisions concerning the future of their companies. However, during this period, they had always experienced an increasing domestic carbonated soft drink (CSD) consumption. Now, that the CSD consumption is declining, and the non-CSD
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Cola Wars Continue 1. The soft drink industry has been so profitable due to a plethora of reasons including: 1) direct distributors for companies; 2) low costs to produce concentrate for fountain sales and bottling; 3) utilizing their own subsidiaries to bottle, package, and produce concentrate; 4) tactical brand partnerships that allow penetration in mixed markets; 5) companies monopolizing pouring rights with exclusive chains through contracts ensuring profits with no competition. The leading
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Based on the case “Cola Wars Continue: Coke and Pepsi in 2010,” use game theory approach/analysis to explain the competitive behavior of Coke and Pepsi making specific references to actions taken by each firm and the different “battlefields.” What conclusions can you draw about the competitive strategies pursued by both companies? At the time the Case was written was there a winner? Should both companies have acted differently? The game theory approach used between the two CSD giant Coke and Pepsi
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