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
Premium Pepsi Bottle Coca-Cola
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
Premium Coca-Cola Soft drink Pepsi
Case Memo 1 Cola Wars 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
Premium Pepsi Coca-Cola Soft drink
Five Competitive Forces for Coca-Cola Company The soft drink industry is very competitive for all corporations involved‚ with the greatest competition being that from rival sellers within the industry. All soft drink companies have to 7 think about the pressures; that from rival sellers within the industry‚ new entrants to the industry‚ substitute products‚ suppliers‚ and buyers. The competitive pressure from rival sellers is the greatest competition that Coca-Cola faces in the soft drink
Premium Coca-Cola Soft drink
Michael Porter developed five different forces in a framework he felt influenced industries. This framework was designed to help companies find ways to off-set a rival company and to help develop a more solid business plan. It has been known over the years a rivalry has existed been two of the biggest soda companies‚ Coca Cola and Pepsi. Three of Porter’s forces that are exemplified in this “coke war” are buyer power‚ barriers to entry‚ and rivalry which will be explained and elaborated on in
Premium Soft drink Coca-Cola Pepsi
Cola Wars Continue: Coke and Pepsi in 2010 Consider the CSD industry. Have Coke and Pepsi’s profits historically been high? Do you consider it surprising or not surprising given the product they produce? In the CSD industry‚ the highest net profit-sales ratio of Coke and Pepsi are 21.1% and 14.3%‚ and the steadily growth is also surprising.so the profits are high. The content is water‚ Coke syrup‚ CO2‚ and additives‚ which cost about 10 cents per can‚ nearly next to nothing. What are the primary
Premium Advertising Marketing Coca-Cola
The competition within the $74 billion carbonated 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
Premium Brand Coca-Cola Brand management
Architecture and Strategy Assignment week two: “Cola Wars Continue: Coke vs. Pepsi in the 1990s” Professor: Orlando Rivero D.B.A. April‚ 3‚ 2008 Cola Wars Continue: Coke vs. Pepsi in the 1990s Overview This paper will explore Porter’s Five Forces ( Porte 6) and Branderburger and Nalebuff’s Value Net to answer this questionnaire and describe soft drinks industry characteristics. The soft drink industry is concentrated with the three major players‚ Coca-Cola‚ Pepsi‚ and Cadbury Schweppes Plc.‚ making
Premium Soft drink Coca-Cola Pepsi
Topics 1----- Five forces: industrial analysis How is it that even in the best-performing industries only some firms do well? What factors might explain differences in firm performance within the same industry? 5. (12-13) (a) What are the determinants of firm performance (b) Use a real life example to illustrate how five forces analysis may be used in practice (c) Five forces are used to make decisions as whether to entry an industry or not. 1. five-forces analysis is a tool to analyze level
Premium Coca-Cola
Five Forces 1 The Five Forces Southwest Airlines 2 Michael Porter’s ideology of The Five Forces Model is the framework for the modern thinking about competition and strategy (Magretta‚ 2010). The five forces that any company needs to address in any industry are‚ The Threat of Entrants‚ The Bargaining Power of Buyers‚ Threats of Substitutions‚ The Bargaining Power of Supplier‚ and The Intensity of Competitive Rivalry. The forces are interrelated in such a way that if implemented accordingly
Premium Southwest Airlines Airline American Airlines