COMPANY OVERVIEW Coca-Cola‚ the world’s largest producer and marketer of nonalcoholic beverages claims a 10% market share worldwide selling about 500 million servings annually. On a worldwide scale‚ Coca-Cola divides and segments their operations into 5 different segments: • North America • Africa • Asia • Europe‚ Eurasia‚ and Middle East • Latin America As each segment is different‚ but equally important to their success‚ Coca-Cola’s largest driver comes from the Europe‚ Eurasia‚ and Middle
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Cola Wars Continue: Coke and Pepsi in 2010 Pepsi and Coke fought over the 74 billion CSD (carbonated soft drinks) industry. --> Nothing contribute as much to the success of Pepsi than Coke and vice-versa What had to be done to ensure sustainable growth and profitability? Economics of the U.S CSD Industry 1970 - consumption grew by an average of 3% per year --> increasing availability of CSD + intro of new diet and flavoured variety + Declining real prices --> CSD more affordable -->
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"Cola Wars Continue: Coke and Pepsi in 2010" Read and Apply: Michael E. Porter (2008)‚ “The Five Competitive Forces that Shape Strategy”‚ Harvard Business Review‚ (January 2008)‚ pp. 2-17 Assignment Questions (AQ) (a) Why has the soft drink industry been so profitable for concentrate producers? Compare the economics of the concentrate business to the bottling business: why is the profitability so different? [50% points] The soft drink industry has been extremely profitable for Concentrate
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Cola Wars Continue: Coke and Pepsi in the 21st Century Concentrate Producers and Bottlers were two of the four major participants that were involved in the production and distribution of Carbonated Soft Drinks (CSDs) in the United States. The Concentrate Producers (CPs) were responsible for blending raw material ingredients‚ packaging the blend in plastic canisters‚ and shipping it to the Bottler. Using Porter’s Five Forces analysis for the CPs industry‚ we determined that
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Cola Wars Continue: Coke and Pepsi in 2006 other beverage. Within the CSD category‚ the cola segment maintained its dominance‚ alihough its market share dropped from 71% n 1990 to 60% in 2004.5 Non-cola CSDs included lemon/lime‚ citrus‚ pepper-type‚ olange‚ root beer‚ and other flavors. CSDs consisted of a flavor base (called "concentrate")‚ a sweetener‚ and carbonated water. The production and distribution of CSDs involved four major participants: concentrate producers‚ bottlers‚ retail drannels
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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?Based on the case “Cola Wars Continue: Coke and Pepsi in 2010‚” use game
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Session 3: Cola Wars Continue: Coke and Pepsi in 2010 Sun Hyun Park‚ Ph.D. Assistant Professor Marshall School of Business University of Southern California “Cola Wars” Blind Test “Can you tell the difference?” Student A 1: Coca Cola Student B 1: Big K Cola (Kroger) 2: Pepsi 3: Coca Cola Student C 1: Pepsi 2: Pepsi 3: Big K Cola (Kroger) 2: Coca Cola 3: Big K Cola (Kroger) Agenda for Today • Recap - Value chain analysis - Five Forces Model • Case Discussion: Cola Wars - Industry
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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.
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Cola Wars CASE STUDY : COLA WARS CONTINUE : COKE AND PEPSI IN 2006 The case study “Cola Wars Continue: Coke and Pepsi in 2006” focuses on describing Coke and Pepsi within the CSD industry by providing detailed statements about the companies’ accounts and strategies to increase their market share. ‘ Cola war’ is the term used to describe the campaign of mutually targeted television advertisement & marketing campaigns between Coke & Pepsi. Furthermore‚ the case also focuses on the Coke vs. Pepsi
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9-706-447 REV: APRIL 16‚ 2009 DAVID B. YOFFIE Cola Wars Continue: Coke and Pepsi in 2006 For more than a century‚ Coca-Cola and Pepsi-Cola vied for “throat share” of the world’s beverage market. The most intense battles in the so-called cola wars were fought over the $66 billion carbonated soft drink (CSD) industry in the United States.1 In a “carefully waged competitive struggle” that lasted from 1975 through the mid-1990s‚ both Coke and Pepsi achieved average annual revenue growth of around
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