Essentially the case discusses about the rivalry of Coca-Cola and Pepsi throughout the years from the beginning, and how they manage to come up with a more lucrative way to establish more market share. The case mentioned the reasons profitability of the soft drinks industry. The reasons for this profitability are:…
By reducing the threat of backward integration and substitute inputs, and by implementing favorable contracts, concentrate producers exercised control over buyers and increased profits.…
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.…
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 goods which target similar groups of costumers, and how these companies have had and still have great reputation and continue to take risks due to their high capital.…
E. Do not recognize any sale subject to recall product costs, until the warranty period has expired (3 years) for all campaigns.…
For over a century, carbonated drink was introduced to mankind. Two major contenders in the industry stand Coca-Cola and PepsiCo. The two soar in the industry as they compete with each other. There were amazing monopolistic behaviors found in their doings. Have you ever wondered why such drink without any redeeming health benefits, but rather sublimely known as one of the causes to sugar and fat related diseases, can be so profitable? By setting the health benefits aside, have you ever wondered why such drinks are so popular yet a lot of competitors are unable to imitate and stand up to beat them? The secret lies…
[ 2 ]. See Exhibit 1 of the HBS case Study „Cola Wars Continue: Coke and Pepsi 2006“ by D.B. Yoffie.…
umption level since 1989.4 At the same time, the tw companies experienced their own di…
Read the articles below and analyze the ethical and legal aspects of the actions taken by the cola giants.…
Beer Wars is documentary about the American beer industry and how the 3 largest US breweries try to drive out the competition. This documentary covers how lobbyists are used to control the beer market and drive out smaller breweries such as Dogfish Head Brewery, Stone Brewery, and Moonshot: all producers of craft beer. The documentary describes how a 3 tier system was put into place to separate the powers of selling beer and prevent a monopoly but the laws that were put into place to prevent the monopoly, infact, promoted the size and strength of the largest beer corporations. An oligopoly was formed and maintained between Anheuser Busch, Coors, and Miller.…
The Assigned case that I am to discuss is Leonard v. Pepsi Cola. In this paper I will discuss the facts of the case, the history, issues the court had to decide, the holding or the answer to the questions, the reasoning the court used to justify the decision, and finally the results and the judgment.…
unleashed a brilliant ploy to make Coke the early bird in many of the major…
Beer Wars is a documentary film directed and produced by Anat Baron and released in April of 2009. It focuses on the struggle between the dominating corporate businesses of Anheuser-Busch, Miller Brewing Company, Coors Brewing Company, and the smaller independent businesses of “craft beers” such as Dogfish Head Brewery, The Boston Beer Company, and The New Belgium Brewing Company. The film covers many aspects of the beer “wars” between the companies such as competitive advertising, product quality, price, distribution, and government regulations.…
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, and beers. This makes carbonated soft drinks more profitable than the other beverages because it has a higher consumption rate. Another reason why carbonated soft drinks are profitable is that it is easy to make since it is made up of a flavor base with added sweetener and carbonated water. These main ingredients are relatively cheap compared to the bottling process. Since 1970, the growth of carbonated soft drinks continues to rise 3% per year for the next 30 years because of diet carbonated soft drinks and other flavored drinks. Soft drinks are also found in supermarkets, convenient stores, vending machines, and restaraunts. This makes the soft drinks more accessible to their customers. Soft drinks are also consumed by cans, plastic bottles, glass bottles, and fountain drinks.…
When people mention beer breweries, people would probably say Anheuser Busch, Miller, and Coors, these three biggest beer breweries companies of the United States of America. They have total 78% market share of the United States beer industry. How do other small beer breweries to compete and challenge to these three beer giants? From the movie, there is a taste test of Bud light, Miller light and Coors light. Most people cannot recognize each of them, because these three biggest beer breweries use the similar formula for years. Another way to say is they were not actually meeting customer tastes and expectations. Thus, there comes an opportunity to these small beer breweries to make special tastes beer to compete and challenge to these three beer giants.…