Cameron V. Collins
MGT – 490
June 10th, 2011
Case Study #1 – Cola Wars Continue: Coke vs. Pepsi in the 1990s
When it comes to soft drinks there are two top soft drink brands that come to mind, Coke and Pepsi. These two brands were invented in the 1800s and produced tasteful drinks that could be acquired at the nearest drinking fountain. The first drink produced by both companies, Coca-Cola by Coke and Pepsi-Cola by Pepsi, fought neck and neck from their early existence. Coke and Pepsi being competitors of each other from that day on went on to produce numerous of drinks that mirrored each other in some way over the next 100 years. In this case study that I extensively read I became more familiarized with both brands and more knowledgeable of their backgrounds and competiveness amongst each other. The primary focus is how the brands were conducting business in the 1990s. The following two questions have been posed and I will answer them with supporting information from the reading itself:
1) Is this a good business? If so, for whom? Where is the money being made?
2) Why is the soft drink industry so profitable? Why shouldn’t it be?
After answering these two questions I hope to have explained why the two brands either were or weren’t good businesses in the 1990s, where their profits were coming from, and why was the soft drink industry so profitable and if it shouldn’t have been in that decade.
Is this a good business? If so, for whom? Where is the money being made?
Dating back to the early days of soft drinks, we can see that both the Coke and Pepsi have been competitors fighting for the lead amongst consumers. Coke in my opinion has been the better company of the two due to their early idea of taking their company international. With Coke taking their company international this allowed them to become more profitable and distance themselves from...