Why and how can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-carbonated drinks? The ‘Cola Wars’ have through the years shown the intense competition between Coca-Cola and PepsiCo. While the competition to gain new market share may no longer be as intense‚ the two companies are still fighting to remain relevant with a continued demand of their products. As the U.S. has shown an interest in non-carbonated drinks‚ domestic demand for carbonated
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and competition are ultimately responsible for industry profitability‚ an analysis of the five competitive forces offers an explanation for the success of the soft drink (CP) industry. The soft drink industry benefits from generally benign forces. Colas characterized the first 50+ years of the soft drink industry‚ with Coke and Pepsi accounting for the top brand names. While substitutes for soft drinks certainly exist‚ the major players in the CP industry have successfully shaped this competitive
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Cola Wars Pepsico – Profile PepsiCo is one of the world’s leading producers of snack foods and beverages including Pepsi soda. Its principal businesses include: Frito-Lay snacks‚ Pepsi-Cola beverages‚ Gatorade sports drinks‚ Tropicana juices and Quaker foods. PepsiCo brands are available in nearly 200 countries and territories. The company operates in four divisions: PepsiCo Americas Foods (PAF)‚ PepsiCo Americas Beverages (PAB)‚ PepsiCo Europe‚ and PepsiCo Asia‚ Middle East and Africa (AMEA).
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Image/Loyalty: It is virtually impossible for a new entrant to match this scale in the market. * Retail Distribution: Significant margins of 15-20% for the shelf space. New entrant finds it hard to convince the retails for this space. * Price Wars: New entrant does not stand a chance due to the large scale production of Pepsi and Coke. * Commodity Ingredients: Basic commodities are Sugar‚Additives‚Colour‚Flavour.The producers have no say over the pricing hence the suppliers are weak in this
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MKTS 7303 - PRINCIPLE OF STRATEGIC MANAGEMENT Cola Wars (Coke and Pepsi 2010) Case Study - Week 4 (S42166755) 1. Compare the competitive dynamics of the concentrate business to that of the bottling business? Why is the profitability so different? By using Five Forces Model by Michael Porter‚ it will shows competitive dynamics in the industry. Therefore‚ to define everything further this model will be used to do the comparison between concentrate business (CB) and bottling business (BB).
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HTM 4101 Strategic Management Cola Wars case study – Five forces analyses Concentrate producers: Bargaining power of buyers: Refer to the case‚ direct buyer is the bottler and indirect buyers are the end consumer and suppliers such as supermarkets and other outlets. Bargaining power of buyers for concentrate producers refers to the bargaining power of the bottlers. From the industry perspective‚ it is true that bottler could choose to switch their concentrate producers. Bargaining power
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Cola War Soft drinks are profitable because it is a $60 billion industry in the United States alone. Not only is it profitable in the United States‚ but both Pepsi and Coca-Cola have expanded their franchises internationally and both have become competitive brands. It is estimated that the average American can consume about 53 gallons of carbonated soft drinks a year. According to the article‚ Americans drink more soda than any other beverages on the market today‚ such as sports drinks‚ juices
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Cola Wars Continue : Coke and Pepsi in 2010 Introduction "Cola Wars Continue: Coke and Pepsi in 2010” explain the economics of the soft drink industry and its relation with profits‚ taking into account all stages of the value chain of the soft drink industry. By focusing on the war between Coca-Cola and PepsiCo as market leaders in this industry with a 90% market share in carbonated beverages‚ the study analyses the different stages of the value chain (concentrate producers‚ bottlers‚ retail
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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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Slide1: International strategy (tiêu đề của slide nhé c) The enterprise has core competencies => the competitors in the host country does not have or difficult to develop‚ catch up or imitate Being not under pressure to localize products and to reduce production costs Company’s head office played a central role Slide 2: International strategy of Coca Cola (1900 to 1950) 1899-1909: added to 379 bottling plants across the United States for consumption of about 70 million liters / year. 1906: developing
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