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.…
Based on the case “Cola Wars Continue: Coke and Pepsi in 2010,” use game theory approach/analysis to explain the competitive behavior of Coke and Pepsi making specific references to actions taken by each firm and the different “battlefields.” What conclusions can you draw about the competitive strategies pursued by both companies? At the time the Case was written was there a winner? Should both companies have acted differently?Based on the case “Cola Wars Continue: Coke and Pepsi in 2010,” use game theory approach/analysis to explain the competitive behavior of Coke and Pepsi making specific references to actions taken by each firm and the different “battlefields.” What conclusions can you draw about the competitive strategies pursued by both companies? At the time the Case was written was there a winner? Should both companies have acted differently?Based on the case “Cola Wars Continue: Coke and Pepsi in 2010,” use game theory approach/analysis to explain the competitive behavior of Coke and Pepsi making specific references to actions taken by each firm and the different “battlefields.” What conclusions can you draw about the competitive strategies pursued by both companies? At the time the Case was written was there a winner? Should both companies have acted differently?Based on the case “Cola Wars Continue: Coke and Pepsi in 2010,” use game theory approach/analysis to explain the competitive behavior of Coke and Pepsi making specific references to actions taken by each firm and the different “battlefields.” What conclusions can you draw about the competitive strategies pursued by both companies? At the time the Case was written was there a winner? Should both companies have acted…
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…
Concentrate Producers and Bottlers were two of the four major participants that were involved in the production and distribution of Carbonated Soft Drinks (CSDs) in the United States.…
umption level since 1989.4 At the same time, the tw companies experienced their own di…
According to the 5-forces model, each industry’s profitability can be assessed considering the five forces that influence the market – The rivalry among existing competitors, bargaining power of suppliers, bargaining power of buyers, threat of new entrants, and threat of substitute products or services. Considering the rivalry among existing competitors, the rivalry is very intense. Among national concentrate producers, Coke and Pepsi claimed a combined 72% of the U.S. CSD market’s sales volume. The Cola war has begun in 1950s and the competition is still ongoing. Also, the competitions in other sectors of drinks and between small concentrate producers were harsh.…
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?…
The Carbonated Soft Drink (CSD) industry is a profitable one despite the “Cola Wars” between the two largest players – Coke and Pepsi. Such profitability can be understood by analyzing the CSD’s industry structure in terms of “Porter’s five forces.”…
unleashed a brilliant ploy to make Coke the early bird in many of the major…
(a) Why has the soft drink industry been so profitable for concentrate producers? Compare the economics of the concentrate business to the bottling business: why is the profitability so different? [50% points]…
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.…
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:…
In the 1980s, Cola Wars between Coke and Pepsi started to heat up. To get more profits than the other, they tried in doing so many things such as a huge investment for advertising, evolving structures and strategies to improve system profitability, and developing non-CSDs. These efforts affected on the share of total beverage consumption which reached 28.7% in 2004 from 12.4% in 1970 according to the exhibit 1. It is a result of their struggling for getting a bigger market share. Also the bottlers and concentrate producers should have struggled as well to make more profits. The war made these efforts, and the efforts made profitable results.…