that they are a present duopoly. Their selling power is shown through the knowledge of identifying the lowest price. The duopoly had two selling statements concerning competitors in which the average answer for both statements was higher that the local retailers. This can be justified through the buyer’s knowledge of where to purchase the cheapest products‚ having the highest average response of 4.23. However‚ the local retailers are not far behind‚ trying to remain price competitive by having great
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Cola Wars Continue: Coke and Pepsi in 2006 1. Why is the soft drink industry so profitable? In an industry dominated by two heavyweight contenders‚ Coke and Pepsi‚ in fact‚ between 1996 and 2004 per capita consumption of carbonated soft drinks (CSD) remained between 52 to 54 gallons per year. Consumption grew by an average of 3% per year over the next three decades. Fueling this growth were the increasing availability of CSD‚ the introduction of diet and flavored varieties‚ and brand extensions
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Continue: Coke and Pepsi in 2006 Coca-Cola and Pepsi-Cola have a long history of intense competition since 1950. Besides the CSD (carbonated soft drink) consumption rise‚ it brought both Coke and Pepsi enjoyed significant revenue growth. In 2004‚ CSD has 52.3% of total US Liquid Consumption. Coke and Pepsi had 22.1% and 14.4% in Net profit/sales respectively. There are four major participants involved in the production and distribution of CSDs: 1. Concentrate Producers (Coke‚ Pepsi‚ and others))
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Cola Wars Continue : Coke and Pepsi in 2006 1. Why historically has the soft drink industry been so profitable? * High rate of consumption increasing at an average of 3% per year * Increasing availability of CSDs * Introduction of diet and flavoured varieties Year | 1970 | 1975 | 1981 | 1985 | 1990 | 1994 | 1996 | 1998 | 2004 | Consumption in Cases (million) | 3090 | 3780 | 5180 | 6500 | 7780 | 8710 | 9290 | 9880 | 10240 | 2. Compare the economics of concentrated
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Financial Analysis Edward Kowalski XACC/280 22July12 Dr. Edward Walden University of Phoenix a) PEPSICO‚ INC. Trend Analysis of Net Sales and Net Income For the Five Years Ended 2005 Base Period 2001—(in millions) | | | 2005 | | 2004 | | 2003 | | 2002 | | 2001 | | | | | | | | | | | | | (1) | ------------------------------------------------- Net sales Trend | | $32562 |
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soft drink (CSD) industry has been remarkable ever since Coca-Cola was formulated in 1886‚ and further intensified when Pepsi was introduced in 1893. Ever since then‚ the CSD industry has been dominated by these two companies‚ with Coke taking the lead in the early stage‚ followed by Pepsi doubled its market share between 1950 and 1970 by offering its concentrate at a lower price than its competitor. The CSD industry has been profitable historically due to numerous reasons. Firstly‚ in the world’s
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Strategy ‘Cola Wars Continue: Coke and Pepsi in 2010’ Analysis of the US carbonated soft drinks (CSD) industry (a) Strategic issues The CSD market in the US (approx. $74 billion) is dominated by two concentrate manufacturers – namely Coke and Pepsi –. Both companies have been competing intensely since the 1970s‚ yet have thrived from this competition and have grown the business very profitably‚ as both have benefitted from the CSD market growth rates of around 10% p.a. until the early 2000s
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in the debate of Coke vs. Pepsi. Very recently‚ Coca-Cola launched a new campaign called “Share a Coke”. The basis of the campaign was that on every coke bottle there was either a first name‚ such as Thomas or Emily‚ or something more general like Share a Coke with friends or family. Share a Coke not only attracted regular customers but everyday people. Seeing either your name or your friend’s name on a soda bottle just made consumers want to buy them. Having personalized coke bottles really helped
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Cola Wars Continued – Coke vs. Pepsi in 2006 Reading the case‚ special attention should be paid to the underlying economics of the soft drink industry and its relationship to average profits‚ the relationship between the different stages of the value chain in the industry‚ the relationship between competitive interaction and industry profits‚ and the impact of globalization on industry structure. While preparing the case‚ you should start by carefully characterizing the carbonated soft drink
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the Islamic banking industry Ho‚ G. T. S.‚ Lau‚ H. C. W.‚ Lee‚ C. K. M.‚ and Ip‚ A. W. H. (2005). An intelligent forward quality enhancement system to achieve product customization Iglesias‚ M. P.‚ & Guille’n‚ M. J. Y. (2004). Perceived quality and price: Their impact on the satisfaction of restaurant customers Islamic Bank of Brunei Bhd. (2000). Annual report. Brunei Darussalam: Author. Kayis‚ B.‚ Kim‚ H.‚ & Shin‚ T. H. (2003). A comparative analysis of cultural‚ conceptual and practical constraints
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