Coke Wars Case Study
Coke Wars Case Analysis: Competition, Strategy, and Implications
Webster University Summer 2012
INTRODUCTION
The rivalry between Coca-Cola & Pepsi can be deemed as legendary, “the top soft drink competitors in the world spend millions of dollars yearly to try and convince you that their version of soft drink is better” (Dotson pg 1). Over the past century, it seems they have feuded over everything from who has superior taste, to the pursuit into space, and more recently over NASCAR and the social media race. Regardless of who is ahead in the competition, the battles between Coca-Cola & Pepsi demonstrate important strategic adaptations that the corporations must execute so as to thrive in the constantly changing realms of customer satisfaction, business environments and technology. This paper will: 1) review the strategic issues presented in the “Coke Wars” case through the use of the Strategic Management Model as applied to both Coca-Cola & Pepsi; 2) highlight fundamental strategies & tactics so as to analyze the inherent competition between both corporations; and finally 3) discuss implications of concepts presented in the case for the middle manager so as to grasp lessons learned for future application.
STRATEGIC MANAGEMENT MODEL (SMM)
The text describes strategic management as “the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives” (Pearce, Robinson pg 3). With this definition in mind then, the Strategic Management Model can be considered as a very useful framework by which managers plan and implement business strategies. More importantly, in today’s global business environment “firms need perfect processes that respond to increases in the size and number of competing firms; to the expanded role of
Webster University Summer 2012
INTRODUCTION
The rivalry between Coca-Cola & Pepsi can be deemed as legendary, “the top soft drink competitors in the world spend millions of dollars yearly to try and convince you that their version of soft drink is better” (Dotson pg 1). Over the past century, it seems they have feuded over everything from who has superior taste, to the pursuit into space, and more recently over NASCAR and the social media race. Regardless of who is ahead in the competition, the battles between Coca-Cola & Pepsi demonstrate important strategic adaptations that the corporations must execute so as to thrive in the constantly changing realms of customer satisfaction, business environments and technology. This paper will: 1) review the strategic issues presented in the “Coke Wars” case through the use of the Strategic Management Model as applied to both Coca-Cola & Pepsi; 2) highlight fundamental strategies & tactics so as to analyze the inherent competition between both corporations; and finally 3) discuss implications of concepts presented in the case for the middle manager so as to grasp lessons learned for future application.
STRATEGIC MANAGEMENT MODEL (SMM)
The text describes strategic management as “the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives” (Pearce, Robinson pg 3). With this definition in mind then, the Strategic Management Model can be considered as a very useful framework by which managers plan and implement business strategies. More importantly, in today’s global business environment “firms need perfect processes that respond to increases in the size and number of competing firms; to the expanded role of