Cola Wars

  • Cola Wars

    Cola Wars Case Study DMBA 630 Marketing and Strategy Management in the Global Markeplace Introduction Carbonated Soft Drinks (CSD) have been around for over a century and now accounts for a $60 Billion market with the average American consuming about 53 gallons a year. Coca-Cola was invented in 1886 by John Pemberton as a “potion for mental and physical disorders.” Asa Candler acquired the formula and began marketing it as Coca-Cola. The first bottling franchise was accorded in 1899 for

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  • Cola Wars

    Cola Wars Tonya Hall October 1, 2012 Executive Summary Coca-Cola Company is a leading manufacturer, distributor, and marketer of non-alcoholic drinks in the United States and all over the world. It is a multinational company that has market presence in almost all countries of the world. The company has also diversified from its initial soft drinks to manufacture fruit juices and other non-soda beverages. Its objective has been to maintain its global leadership in the supply of beverages and

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  • Cola War

    making the profit of the industry. * Bottler: Bottles’ gross profits routinely exceeded 40% but operating margin were usually around 8%. Therefore the Coca-Cola and Pepsi organize a nationwide franchise bottling network, made a huge investment in their network, provide franchise agreements allowed bottlers to handle the non-cola brands of other concentrate producers in order to maintain the business value because the bottler is important business but it don’t earn the money appropriately.

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  • The Cola War

    The Cola Wars are a campaign of mutually-targeted television advertisements and marketing campaigns since the 1980s between soft drink manufacturers Coca-Cola Company and PepsiCo Incorporated. * | [edit]Competition Many of the brands available from the three largest soda producers, The Coca-Cola Company, PepsiCo and the Dr Pepper Snapple Group, are intended as direct, equivalent competitors. The following chart lists these competitors by type or flavor of drink. Flavor/type | PepsiCo |

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  • Cola Wars

    Pepsi for market share, and this occasionally hampered profitability. For example, price wars resulted in weak brand loyalty and eroded margins for both companies in the 1980s. The Pepsi Challenge, meanwhile, affected market share without hampering per case profitability, as Pepsi was able to compete on attributes other than price. Substitutes: Through the early 1960s, soft drinks were synonymous with “colas” in the mind of consumers. Over time, however, other beverages, from bottled water to teas

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  • Cola Wars

    FAILLA Stefania ALAIMO Massimo Maria AYARI Neila CALVAGNA Giorgia CRUCITTI Alessia Case study Cola Wars continue: Coke and Pepsi in 2006 Google Inc. Nucor at Crossroad Caterpillar Tractor Co Komatsu Ltd. Crown Cork and Seal Apple Inc. in 2010 Cola Wars continue: Coke and Pepsi in 2006 Google Inc. Nucor at Crossroad Caterpillar Tractor Co Komatsu Ltd. Crown Cork and Seal Apple Inc. in 2010 Cola Wars continue: Coke and Pepsi in 2006 Google Inc. Nucor at Crossroad Caterpillar Tractor Co Komatsu Ltd

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  • Cola Wars

    WEEK 1 DISCUSSION STRUCTURAL FORCES EFFECTS on COLA DRINKS INDUSTRY SUPPLY CHAIN by GIDAGA ALFRED HOOO31960 ABSTRACT Carbonated soft drinks branded under Coca Cola and Pepsi Cola remain major household names in the soft drinks industry. Spanning operation from the original Franchise agreement of 1899 to-date, is an indication of managerial ingenuity of strategy design, implementation and control. Profitability and sustainability as a key issue in business operations necessitates these

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  • Cola Wars

    MarHeting Quarterly, 2006, 15, 114-123, © 2006 West Virginia University Coca-Cola vs. PepsiCo — A "Super'' Battleground for the Cola Wars? Steve M. McKelvey Overview of the Soft Drink Industry Coca-Cola: The Defending Champion Since its inception in the late 1800s, Coca-Cola has experienced meteoric growth, progressing from nine glasses per day to nearly 4.5 billion cases on an annual basis ("Top 10," 2004). Today, Coca-Cola offers nearly 400 brands in over 200 countries and controls the highest

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  • Cola War

    profitability of the bottlers. Net profit of these companies got so low to 2.1% of the sales. To deal with this disaster, these firms made a decision to stop the price war that adversely affected the industry. They then raised prices. The reason Coke got more successful than Pepsi was that Pepsi failed to expand internationally after the world war, so Pepsi tried to make up for itself through entering markets that are emerging and where a competitive disadvantage for Coke is not present. 4. Can

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  • Cola War

    seems difficult in the coming years. Price War: The industry is one of the most competitive and has the lowest tariff rates than anywhere in the world. The call rates dropped from INR 16.80 in 1995 to INR 0.30 in 2013. Operators have been announcing new promotional schemes including reduction in tariffs for Blue Ocean Strategy – Indian Telecom Industry voice call, slashing roaming charges and many more such lucrative offers. Due to the fierce price war the profit margin and return of capital has

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  • Cola War

    Cola Wars Continue: Coke and Pepsi in 2010 1. Briefly describe the basic structure of the CSD industry and how it has evolved. The production and distribution of CSDs involves four major participants: producers, bottlers, retail channels and suppliers. a. Concentrate Producers blended raw materials for the soft drinks, package it and sell mixture to the bottlers. Though they require little capital investment, their significant costs were from advertising, promotion, market research and

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  • Cola Wars

    packaging (bottles and cans), the suppliers of these raw materials have less bargaining power against the concentrate producers (CPs) and bottlers. i. Sugar: Sugar can be obtained from various sources on an open market and if price of sugar increases, the cola companies can easily switch to low price artificial sweeteners or high-fructose corn syrup. Though aspartame, used in diet beverages, gained the bargaining power for time-being while it was under patent protection ii. Cans: With abundant supply of

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  • Cola War Continue

    Cola War Continue: Coke and Pepsi in 2010 The following characteristics are important to conclude the competitive intensity and attractiveness of the CSD industry: the threat of substitute products, the threat of established rivals, the threat of new entrants, the bargaining power of suppliers and the bargaining power of buyers. First, the threat of substitute products such as sports drinks, juice and bottled water is relatively high to the CSD industry due to the shift in consumption patterns

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  • Cola Wars Case Study

    Cola Wars Continue: Coke and Pepsi in 2010 Analysis of Case: HBS Case 9 – 711 – 462, May 26, 2011 Coke and Pepsi are part of an oligopoly market. They are and have been the two largest producers of CSDs since the 50’s and have been competing since the early 1900’s. Coke created a barrier to entry into the market in the early days by trademarking its secret formula and going to “battle” with several imitators which they won; including Pepsi in 1938, which they lost. Coke, as the larger

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  • Cola Wars

    Cola Wars Continue: Coke and Pepsi in 2010 1. The soft drink industry is a billion dollar industry that can turn a profit in less than a minute. There are many factors as to why this is such a profitable industry such advertising and promotions. The two biggest corporations being Pepsi and Coke (who both need each other in this relationship) have battled it out through the years but have always seemed to be level with each other. The reason being that both of these companies compete with each

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  • Cola Wars

    management of Pepsi Cola and Coca-Cola in an effort to make recommendations on how Pepsi Cola can build strategies in gaining a larger share of the market. The assessment of strategic management begins with the vision and mission of both organizations, which leads into literature review that identifies the consumer preferences of both Pepsi Cola and Coca-Cola. Following the literature review is the teams’ own personal assessment of consumer preferences for the Pepsi Cola and Coca-Cola brand (Please refer

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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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  • Cola War

    Cola War 1. Why, historically, has the soft drink industry been so profitable? First, high entry barrier. Both of them have long history and large investment in advertisements which make Coke and Pepsi become the culture symbol of America. And their franchise system gets large economies of scale for them. Second, limited competition. In CSD industry, Coke and Pepsi are the main competitors. They claimed a combined 72% of the US CSD market’s sales volume in 2009. Third, their fixed customers

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  • The Cola Wars

    Case Study #2 Cola Wars Management 5650 Fall 1 October, 17, 2013 Introduction There has been stiff competition between companies that produce similar goods. This competition is alive and well, especially in situations where there is need for a multiple of companies that offer similar goods and services to counter monopoly. However, these wars can take a different turn and bring changes to general operations of some firms (Long & Harding, 1998). Coca Cola and Pepsi are such companies

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  • Cola Wars

    <Strategic management case analysis-“Cola wars continue”> 1. There are several reasons for soft drink industry to have been so profitable. To calculate profit, we use this formula “Profit=Price*Quantity-Cost”. The sales of soft drink soared after the 1970s based on its increasing availability and diverse flavors. People literally demanded soda more than any other beverages so it affected the quantity. Due to inflation that made overall price higher, consumers felt the real price of

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  • Cola Wars Memo

    controlled by Coca-Cola Company (Coca-Cola) and PepsiCo (Pepsi), together claiming a combined 72% of the U.S. carbonated soft drink (CSD) market sales volume in 2009. Refer to Exhibit 1 for an illustration of the CSD industry value chain. For more than a century, Coca-Cola and Pepsi have maintained growth and large market shares through mastering five competitive forces, shown in Exhibit 2, that drive profitability and shape the industry structure. Entry Barriers: Both Coca-Cola and Pepsi have strong

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  • Cola Wars

    the US Carbonated Soft Drink (CSD) Industry • • • Americans consumed 23 gallons of CSDs annually in 1970 Consumption grew by 3% per year over the next 3 decades Increasing availability of CSDs and introduction of diet and flavored varieties Non-cola CSDs were introduced • Production & Distribution of CSD 1. 2. 3. 4. Concentrate producers Bottlers Retail channels Suppliers 1. Concentrate Producer • • • • • • Blended raw material ingredients, packaged the mixture, shipped

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  • Cola Wars - Going Global

    COLA WARS: GOING GLOBAL 1. Reading synthesis The Harvard Review article discuss how the 2 most successful cola companies, Coca Cola and Pepsico, had been struggling in the market since they started their operations. The interesting part is how it explained how each one of the companies developed their market in different countries. In this case, it explained the companies history in Mexico, China and India. What I think is more important to understand is that each country has different

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  • Cola Wars Continue

    COLA WARS CONTINUE COKE and PEPSI IN 2006 Adityo Wibowo (10 / 310520 / PEK / 15397) Yohan Suryanto P (10 / 310533 / PEK / 15410) Muhammad Jusuf (26E1024) MAGISTER OF BUSINESS ADMINISTRATION FACULTY OF ECONOMICS AND BUSINESS GADJAH MADA UNIVERSITY 2010 PROFIL PERUSAHAAN Pada 8 Mei 1886, Dr.John Stith Pemberton, ahli farmasi berkebangsaan Amerika mencampurkan jenis sirup, obat elixir, French Wine of Coca, Bordeaux, kokain dan kafein (yang berasal dari biji kola). Ramuan itu adalah

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  • Cola Wars Continue

    In the “Cola Wars Continue: Coke and Pepsi in 2010” the history of Carbonated Soft Drinks (CSD) and its development in modern society illustrates how these two companies advance and compete within an oligopoly market. One of the approaches used in oligopolies is the Game Theory Approach. The basic elements of game theory are (1) the players, (2) the strategies available for each, and (3) the payoff each receives. There are different “battlefields” on which Coke and Pepsi compete:  products, pricing

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  • Colas War

    CORPORATE STRATEGY Case report 1 : “Cola Wars Continue : Coke and Pepsi in 2010” Compare the economics of the concentrate business to that of the bottling business: why is the profitability so different? Concentrate producers and bottlers are both involved in the production and distribution of CSD. They are both essential even tough, the profitability of the concentrate business is much better. The main reason for this difference is the production cost. In one hand, we have the concentrates

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  • Cola Wars Analysis

    Analysis Cola Wars Continue – HBR 702442 History of the Cola Wars For decades, Pepsi and Coca Cola fought over the market share of the soft drink industry. Throughout this almost duopolistic competition, Coke’s share grew from 33.4% in the 1960s to 44.5% in the late 90s; while Pepsi’s market share grew from 20.4% to 31.4% in the same time span. Although there are other potential firms in the market with considerable market influence such as Schweppes and Royal Crown, Pepsi and Coca-Cola remains

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  • Cola War

    Group 8 - Core B Session 4 - Case Notes 08/24/2006 Professor: Arvind Bhambri Case: Cola Wars Continued: Coke versus Pepsi in the Twenty-First Century Intro: Syllabus Page 16 The Soft Drink industry has been assigned as the vehicle for tackling the topic of industry analysis and competitive dynamics. The case covers developments in the soft drink industry through 1993. It describes how the industry evolved into its current structure largely following Coca-Cola’s leadership. What is particularly

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  • Cola Wars

    MGT 682 February 18, 2003 Cola Wars Continue: Coke and Pepsi in the Twenty-First Century I. Case issue: Implications of strategic rivalry on cola industry's structure and performance (See Exhibits 1 & 2 for analysis) A. Implications on structure of cola industry 1. Bottlers have been consolidated by concentrate producers (CP), placing smaller CPs at the mercy of Pepsi and Coca-Cola's distribution systems (See Exhibit 3) a. Making it tougher for smaller CPs like Cott Corporation to compete

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  • Cola Wars

    The Cola Wars Competitive Strategy  Introduction Coke and Pepsi have been going to war for over a century. This war has been fought with prices, with taste challenges, and with advertising. Throughout this bottle battle both companies have remained dominant players in the carbonated soft drink industry and have moved beyond their original products into many new areas. Resources The core resources that have allowed Coke and Pepsi to maintain dominance are their brand image and their marketing

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  • Cola Wars

    Cola Case Study 1: Attractiveness of the Carbonated Soft Drink Industry By Section 1_8 Paul Ponomaryov (100390461) Gerald-René Goldwater (100491316) Eric Packer (100481757) Course Name: Strategic Management for Professionals BUSI-3700U- 001 Submitted to: Hamid Akbari Due Date: September 30, 2015 Word Count: 798 Introduction The carbonated soft drink industry has been a very competitive industry over the last hundred years. The two main players in the carbonated soft

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  • Cola Wars

    Cola Wars Continue: Coke and Pepsi in 2010 Table of Contents 1 Overview 2 General environmental analysis 3 Industry Analysis 3.1 Industry Structure - U.S. soft drink market share of concentrate producers - Suppliers within the carbonated soft drink industry 3.2 Market Structure - U.S. Liquid Consumption Trend (gallons/capita) - U.S. non-alcoholic refreshment beverage volume 2009 - U.S. soft drink market share – soft drink brands 3.3 Marketing Channels 3.4 Porter’s five forces 4 5 4 2 2 2 2

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  • Cola War

    Coca Cola’s capabilities; Coca cola has great tangible and intangible resources. This ranges from its products, factories, strong financial resources that enable coca cola to ensure quality, flexibility and responsiveness. In addition to the capabilities is a prestigious brand, talented and diverse human resources who understands the market and works in a positive work environment. Coca cola strategic competitiveness; They include but not limited to the following, developing business model to continue

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  • Cola Wars

    clusive use at Institute of Management Technology, Hyderabad (IMT,HYD), 2015 9-702-442 REV: JANUARY 27, 2004 DAVID B. YOFFIE Cola Wars Continue: Coke and Pepsi in the Twenty-First Century For over a century, Coca-Cola and Pepsi-Cola vied for “throat share” of the world’s beverage market. The most intense battles of the cola wars were fought over the $60-billion industry in the United States, where the average American consumed 53 gallons of carbonated soft drinks (CSD) per year. In

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  • Cola Wars

    Coca Cola Wars Case Analysis July 31, 2010 Executive Summary Coca-Cola was invented and marketed in 1886 by a pharmacist named Dr. John Pemberton he named Coca-Cola after the coca leaves and kola nuts he used in order to create the product. Twelve years later in 1898 Caleb Bradham created Pepsi Cola for the beneficial effects it claimed to have on upset stomachs and indigestion. The enmity between the two soda companies are known as the “Cola Wars”. The war began in the 1960’s when Coca-Cola’s

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  • Cola Wars

    Kruti Shah Cola Wars Continue: Coke and Pepsi in 2010 MBA 680 – B 10/27/2015 Introduction: This paper explains the economics of the soft drink industry and its relation with profits. Coke and Pepsi being the dominant player in the industry, Control of the market share is the key issue. The war between Coke and Pepsi has constituted an opportunity for many new challenges year after year. This paper explains competitiveness of both these companies and the effects of the cola wars on overall industry

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  • Cola War Continues

    Cola Wars Continue Description: The competition between Coke and Pepsi is a classic corporate battle, which began in America at the turn of the century and has expanded into worldwide competitive warfare in the 21st century. We will use the case to examine competition and strategy in the carbonated soft drink industry. 1. Why has the carbonated soft drink (CSD) concentrate industry been so profitable for Coke and Pepsi over many decades? * Soft drinks industries have so profitable because

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  • Cola Wars Continues

    Li Jiang, Bus 478 Student Date: January 11th, 2016 ------------------------------------------------- Subject: Cola War Continues: Coke and Pepsi in 2010 Coke and Pepsi have duopoly the soft drink market for decades. It is a mature market with low growth. For all the years, Coca-Cola and Pepsi have built significant brand identity. When people thinking about buying cola, they cannot tell a third brand’s name. Both of them have built mature distribution channels and their large sales volume

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  • Cola War

    Cola Wars Continue: Coke and Pepsi in the Twenty-First Century I. Case issue: Implications of strategic rivalry on cola industry's structure and performance (See Exhibits 1 & 2 for analysis) A. Implications on structure of cola industry 1. Bottlers have been consolidated by concentrate producers (CP), placing smaller CPs at the mercy of Pepsi and Coca-Cola's distribution systems (See Exhibit 3) a. Making it tougher for smaller CPs like Cott Corporation to compete and leaving them open to the

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  • Pepsi Cola War

    Case Summary of Cola Wars Continue: Coke vs. Pepsi in the Twenty-First Century The Soft Drink industry has been assigned as the vehicle for tackling the topic of industry analysis and competitive dynamics. The case covers developments in the soft drink industry through 1993. It describes how the industry evolved into its current structure largely following Coca-Cola’s leadership. What is particularly interesting is determining why the major competitors in the industry have been able to earn above

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  • Cola Wars

    the beginning, Coca-Cola and PepsiCo have shown a great ability to adjust to changes in the market, as well as a great capacity to constantly innovate their products. When facing changing trends by consumers, they were both able to overcome difficult situations, turning them into the industry favorites and to convert them into potential progress, through the creation of new products, which allowed them to keep their profit margins high. In this case, Coca-Cola and PepsiCo it is

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  • Cola Wars

    and syrups for the manufacture of carbonated beverages. Soft drink industry is very profitable, mainly for the concentrate producers than the bottler’s. The leading players of the market are Coca-Cola, Pepsi Cola, and Cadbury Schweppes. In this industry, fierce rivalry between dominant producers Coca-Cola & Pepsi and the bargaining power of the buyers who place huge orders for soft drinks are strong, while the threat of new entry and the threat of substitutes are mild. And, bargaining power of

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  • Cola War

    CASE STUDY: COLA WARS 1. Why, historically, has the soft drink industry been so profitable? PORTER analysis: Soft drink industry Rivalry: HIGH: Exhibit 2 shows that in 2004, 95% of case volume is done by 4 companies (Pepsi: 31,7%, Coke:43,1%). Therefore rivalry is very strong and extremely concentrated. Buyer (=retailers): LOW: stores like Walmart need coke and pepsi to get profit. It represent 5,5% of their sales. Consumers are fan of Coca or Pepsi. So, Why changes? Supplier: LOW: main raw

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  • Cola Wars

    CASE: Cola Wars Continue Question #1 Why, historically, has the soft drink industry been so profitable? The soft drink industry has historically been one of the most profitable industries. Coke and Pepsi, the two most dominant players in the soft drink industry, were both originally created in the late 1800’s as “medicines” and were sold exclusively from drug store soda fountains. Over the years both companies have continued to expand and have more recently shifted focus to non-carbonated soft

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  • Cola Wars

    large, established industry, it is almost impossible for a smaller organization to enter the trade and be profitable. It is especially difficult to compete in the soft drink industry with the two tycoons The Coca-Cola Company and PepsiCo. Having been around for as long as they have –Coca Cola 1892, PepsiCo 1965 the two companies have crushed their industry rivals and dominated the soda trade making the threat of potential entrants extremely low. The barriers to entry are too high because of unequal

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  • Cola War

    1998, the demand for CSD started to level off with a flat declining curve all the way to 2004. Although the cola segment is still dominating the soft drink market with almost 40 percent share (Exhibit-1), the reality is that cola companies found themselves very difficult to boost their market share growth again. There are many causes to this phenomenon. First of all, the similarity taste of cola products from different companies could easily incentivize companies to cut prices in order to compete competitors

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  • Cola Wars

    Cola Wars : Five Forces Analysis October 18, 2007 Posted by goutham in case studies. trackback 1.  Soft Drink Industry Five Forces Analysis: Soft drink industry is very profitable, more so for the concentrate producers than the bottler’s. This is surprising considering the fact that product sold is a commodity which can even be produced easily. There are several reasons for this, using the five forces analysis we can clearly demonstrate how each force contributes the profitability of the industry

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  • Cola Wars

    Cola Wars Continue: Coke and Pepsi in 2010 I. Key Problem For many years, Coke and Pepsi have been the two largest soft drink companies competing for the highest market share in the nation and the world. The Coke formula was created in 1886 by John Pemberton, and later acquired by Asa Candler, who expanded the coke formula and converted it into syrup, which was then sold to bottlers to produce carbonated drinks. Coca-Cola had great success during World War II; the brand expanded internationally

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  • Cola Wars

    Case Study: Cola Wars In this case study I will be comparing the economic factors that go into both the concentrate and bottling elements of the soft drink industry. I will touch on the varying factors of development for both and talk about the profitability of both types of companies. Coca-Cola and Pepsi both own their own concentrate company and bottling company and do not use outside help. We will be analyzing both companies extensively in this case study. Concentrate Producers First, I

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  • Cola Wars

    For the exclusive use of R. PONCE 9-702-442 REV: JANUARY 27, 2004 DAVID B. YOFFIE Cola Wars Continue: Coke and Pepsi in the Twenty-First Century For over a century, Coca-Cola and Pepsi-Cola vied for “throat share” of the world’s beverage market. The most intense battles of the cola wars were fought over the $60-billion industry in the United States, where the average American consumed 53 gallons of carbonated soft drinks (CSD) per year. In a “carefully waged competitive struggle,”

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