Cola Wars
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 to dive into the soft drink industry, and because of this companies who have a competitive advantage will make it rather difficult for a new competitor to enter the market. Brand Equity is the first of many barriers, because large companies like …show more content…
Because they are able to understand and know how each other works, they are less likely to want to start a price war in order to destroy one another. However, since Pepsi did enter the market later than Coke, they have been fighting to catch up and gain an advantage in market share for a long time. This is the reason as to why they have been so aggressive throughout their history, with move like doubling the amount of product received and keeping the price stable, as well as things like the Pepsi challenge, and the Pepsi refresh …show more content…
Something that I have learned from the class discussion as well s reading the case is that, Porter presents a framework that not only analyzes potential markets, but is able to give a strong representation as to if they will be attractive business ventures. Being able to correlate his framework alongside other popular business frameworks such as the SWOT analysis seem to be a good way to interpret an industry that one may be looking to enter into. They are able to breakdown piece by piece why some companies are so successful, and why some competitors fall out of contention in a rigorous market. There is much to learn from Porter and the Cola Wars case, but it is evident that competitive rivalry is what drives an industry. As well as being able to create a competitive advantage one way or another is the way to success in
There are great barriers to entry when trying to dive into the soft drink industry, and because of this companies who have a competitive advantage will make it rather difficult for a new competitor to enter the market. Brand Equity is the first of many barriers, because large companies like …show more content…
Because they are able to understand and know how each other works, they are less likely to want to start a price war in order to destroy one another. However, since Pepsi did enter the market later than Coke, they have been fighting to catch up and gain an advantage in market share for a long time. This is the reason as to why they have been so aggressive throughout their history, with move like doubling the amount of product received and keeping the price stable, as well as things like the Pepsi challenge, and the Pepsi refresh …show more content…
Something that I have learned from the class discussion as well s reading the case is that, Porter presents a framework that not only analyzes potential markets, but is able to give a strong representation as to if they will be attractive business ventures. Being able to correlate his framework alongside other popular business frameworks such as the SWOT analysis seem to be a good way to interpret an industry that one may be looking to enter into. They are able to breakdown piece by piece why some companies are so successful, and why some competitors fall out of contention in a rigorous market. There is much to learn from Porter and the Cola Wars case, but it is evident that competitive rivalry is what drives an industry. As well as being able to create a competitive advantage one way or another is the way to success in