Cola Wars Case Study
Cola Wars Continue: Coke vs. Pepsi in the 1990s
Case Study
By Shamika Shoulders
CSUDH -Management 490
May 26, 2013
SWAT Analysis
Company: PEPSI
Strengths
• The Brand Name
• They appealed to the youth "Pepsi Generation" to help build it consumer base and increase its market share. The youth is a large majority of the population.
• Core Strong Competencies in managing the capital-intensive bottling business. Weaknesses
• Location- little efforts in the international market.
• Spread too thin with other acquired companies outside of the soft drink beverage industry.
• Sold a 12 ounce bottle for 5-cent when their competition sold a 6 ounce bottle for 5-cents.
Opportunities
• Investment in international market- China, Japan, and Mexico tap into Coca-Cola existing market.
• Conduct a Pepsi Challenge in Indonesia. They have a high population, the median age is 18 and they consume only four Coca-Cola a year.
• Increase the price of their 12 ounce can Threats
• Alternatives to soft drinks - natural fruit smoothies, ice teas, water.
• Private label soft drinks had a growth trend 9% - provide lower cost than name brand product with similar quality. Questioned national brand profitability.
• Cola wars- weaken the independent bottlers and required higher stakes in response to the competition actions
Summary:
Pepsi is a good business to work for and invest in because it strengths outweighs it weaknesses. And if the company takes advantage of the opportunities it has will keep them as a front runner in the industry. The threats will be a minor aspect to the business success. Having brand name recognition helps to promote the quality of the product and its focus on youth will help continue to build it customer base. Following through on the opportunity to invest in the suggested international markets will eliminate the location weakness of Pepsi and keep the company on track with its pursuit of a young population. A review and
Case Study
By Shamika Shoulders
CSUDH -Management 490
May 26, 2013
SWAT Analysis
Company: PEPSI
Strengths
• The Brand Name
• They appealed to the youth "Pepsi Generation" to help build it consumer base and increase its market share. The youth is a large majority of the population.
• Core Strong Competencies in managing the capital-intensive bottling business. Weaknesses
• Location- little efforts in the international market.
• Spread too thin with other acquired companies outside of the soft drink beverage industry.
• Sold a 12 ounce bottle for 5-cent when their competition sold a 6 ounce bottle for 5-cents.
Opportunities
• Investment in international market- China, Japan, and Mexico tap into Coca-Cola existing market.
• Conduct a Pepsi Challenge in Indonesia. They have a high population, the median age is 18 and they consume only four Coca-Cola a year.
• Increase the price of their 12 ounce can Threats
• Alternatives to soft drinks - natural fruit smoothies, ice teas, water.
• Private label soft drinks had a growth trend 9% - provide lower cost than name brand product with similar quality. Questioned national brand profitability.
• Cola wars- weaken the independent bottlers and required higher stakes in response to the competition actions
Summary:
Pepsi is a good business to work for and invest in because it strengths outweighs it weaknesses. And if the company takes advantage of the opportunities it has will keep them as a front runner in the industry. The threats will be a minor aspect to the business success. Having brand name recognition helps to promote the quality of the product and its focus on youth will help continue to build it customer base. Following through on the opportunity to invest in the suggested international markets will eliminate the location weakness of Pepsi and keep the company on track with its pursuit of a young population. A review and