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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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 soft drinks has slowed. When this first happened‚ and as it continues to occur‚ both companies looked into
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Cola Wars Continue: Coke and Pepsi in the Twenty- First Century As given in exhibit 1. Per capita consumption of carbonated soft drinks has rose from 1970 to 1999 but in year 2000 there has been a slight drop in per capita consumption. However if we see the similar data for other drinks‚ there has either been a slight rise or fall in per capita consumption in the year 2000. So the per capita consumption data reveals that other drinks are not necessarily eating up the market share of carbonated
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Why is the profitability so different? The reason why their profitability is so different can be known by the fact that the costs they have to meet differ greatly. The concentrate producers need lower cost for building a manufacturing plant about $25 million to $50 million‚ and just one plant is needed. Concentrate producers pay the costs for advertising‚ promotion‚ market research‚ and bottler support. They have to invest for their trademarks continuously. Also they need a number of employees who
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Cola Wars: Coca-Cola vs. PepsiCo The Coca-Cola Company has enjoyed a long and successful history; however‚ it has made mistakes. Though success has not always come easy or cheap‚ Coca-Cola has maintained a large loyal consumer base. As an icon in America and around the world‚ the company can be credited for listening to and catering to the requests and needs of its consumers. This is why its attempt to launch new flavors must be carefully considered to ensure not only acceptance by the target
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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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http://www.dea.unipi.it/staff/e.giuliani/downloads/CocaPepsi.pdf Cola wars continue: coke and pepsi in 2012 $74B carbonated soft drink industry in the US 1975-1990s‚ coke and pepsi both earned average annual revanue growth of around 10%. In 2000‚ us per capita CSD consumption declined. 2009‚ average American drank 46 gallons of CSD per year‚ loest since 1989. Coke suffered from operational setbacks Pepsi charterd new‚ aggressive course in altnerative beverage and snack Challenges Boost
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Cola Wars (Porter’s Five Forces) Barriers to entry The barriers to entry are high for new companies; therefore‚ the threats of new entrants are low. For example‚ retailers enjoy significant margins for their bottom-line. This makes it tough for the new entrants to convince retailers to substitute their new products for Coke and Pepsi. There are an economy of scale‚ high required investment‚ high costs for advertising and marketing promotion‚ high channels of distribution‚ and high products differentiation
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Cola Wars Case Analysis 1. The main way in which my case notes would be different for Cola Wars if I were to have a second try at writing them would be to include a breakdown of how they are able to apply to Porter’s five forces. For example‚ it is evident after reading this case that the soft drink industry is an extremely profitable one (especially for Coke and Pepsi). The reasons for this were discussed in class‚ and I will quickly explain each: There are great barriers to entry when trying
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(2004). American Indian Education: A History. Norman‚ OK: University of Oklahoma Press. Carty‚ B.‚ Macready‚ S.‚ & Sayers‚ E.E. (2009). “A grave and gractious woman”: Deaf people and signed language in colonial New England. Sign Language Studies‚ 9(3)‚ 287-323. Hiner‚ N.R. (1973). The cry of Sodom enquired into: Educational analysis in seventeenth-century New England.History of Education Quarterly‚ 13(1)‚ 3-22. Lang‚ Harry G. Genesis of a Community: The American Deaf Experience in the Seventeenth
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