Cola Wars : Five Forces Analysis October 18, 2007 Posted by goutham in case studies. trackback 1. Soft Drink Industry Five Forces Analysis: 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 five forces analysis we can clearly demonstrate how each force contributes the profitability of the industry
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Discussion Questions 1. Why, historically, has the concentrate sector of the soft drink industry been so profitable? The concentrate sector of the soft drink industry has been very profitable because of low capital investment and maintenance costs. Moreover, it has relatively low COGS compared to other sectors in the industry. These producers also have more negotiating power with both the buyers and the suppliers. To add more, this is also because concentrate business can avoid fixed operating
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Analysis Cola Wars Continue – HBR 702442 History of the Cola Wars For decades, Pepsi and Coca Cola fought over the market share of the soft drink industry. Throughout this almost duopolistic competition, Coke’s share grew from 33.4% in the 1960s to 44.5% in the late 90s; while Pepsi’s market share grew from 20.4% to 31.4% in the same time span. Although there are other potential firms in the market with considerable market influence such as Schweppes and Royal Crown, Pepsi and Coca-Cola remains
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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 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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Case Summary of Cola Wars 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
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Caso Cola wars 1. ¿Por qué la industria de las bebidas gaseosas es tan rentable? Explicar desde el punto de vista financiero y estratégico. Una primera razón del porque la industria de las bebidas gaseosas es tan rentable es por que los costos de producción y procesos se comparten entre productores y embotelladores. Estos dos agentes dependen el uno del otro en producción, procesamiento, marketing y distribución del producto. Si bien los productores mandan el jarabe casi listo a
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controlled by Coca-Cola Company (Coca-Cola) and PepsiCo (Pepsi), together claiming a combined 72% of the U.S. carbonated soft drink (CSD) market sales volume in 2009. Refer to Exhibit 1 for an illustration of the CSD industry value chain. For more than a century, Coca-Cola and Pepsi have maintained growth and large market shares through mastering five competitive forces, shown in Exhibit 2, that drive profitability and shape the industry structure. Entry Barriers: Both Coca-Cola and Pepsi have strong
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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 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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