The Coca-Cola Company Struggles with Ethical Crises I. Summary: Incepting in the late 1800s‚ Coca-Cola has been famous worldwide in beverage industry. Some widely recognized products are Coke‚ Diet Coke‚ Fanta‚ Sprite‚ Virgin Cola‚ etc. CocaCola dominated over PepsiCo in the US in 1993‚ leading in global soft-drink market and was the most-recognized trademark in the world. Its strong reputation was reinforced with philosophic practice‚ philanthropic initiatives‚ international market orientation
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Laura Sanchidrian Fuertes Laura Sanchidrian INTB 4202 Prof. Grigorios Livanis Spring 2014 Coke and Pepsi Discussion Assignment Compare the economics of the concentrate business to that of the bottling business: Why is profitability so different? Comparing the financial statements of the largest concentrate producers (Coca-Cola Company and PepsiCo) and those of the largest bottlers (CCE and PBG) we can easily identify numerous factors affecting their economies and profitability. The first
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Gillette The Razor Wars Continue Overview Case Overview: Founded in 1901 by King C. Gillette‚ the Gillette Company has been extremely successful since it’s inception into the shaving market. Gillette did such a good job from the start in the shaving market‚ that the company went sixty-years before having any meaningful competition for it’s customers. In 1962 Gillette was enjoying a seventy percent share of the market and everything was looking rosy for the top shaving product company in the
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Strategic Management Internationalizing the Cola Wars: The Battle for China and Asian Markets Coke was formulated in 1866 by John Pemberton‚ a pharmacist in Atlanta who sold it at drug store fountains as a “potion for mental and physical disorders.” Since then‚ it has grown and spread in the world as one of best Soft Drink in the world with an intense competition against Pepsi. It has started this competition in 1950s and continues until now. Coke is facing different challenges to how to overcome
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Jiamin Ma Porter’s Five Forces Analysis on Cola Wars Case Threat of New Entrants The threat of new entrants in the soft drink industry is low. Barriers to the CSD industry are extremely high because customers have high brand loyalty towards to either Coke or Pepsi. As the case mentioned‚ Coke and Pepsi spend millions of dollars on advertising even though they are already the dominant companies in the industry. Thus‚ heavy investment on advertising and promotions is necessary for
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and how it has evolved. The CSD industry is very much concentrated. According to Exhibit 2 of the case‚ the market concentration of the two firms was over 75% in 2000 (44% for Coca Cola and 31% for Pepsi) and almost 72% in 2009 (almost 42% for Coca Cola and almost 30% for Pepsi). The barriers to enter the CSD market are very high mainly because of the economies of scale enjoyed by Pepsi and Coca Cola. These two firms produce a very large portion of the total output of the market and they reach their
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Case Study 16: Coke and Pepsi 1. Identify the ongoing issues in this case with respect to issues management‚ crisis management‚ global business ethics‚ and stakeholder management. Rank order these in terms of their priorities for Coca-Cola and for PepsiCo. Number 1 Priority: The major global business ethics I found in this case study was the whole issue with excessive water usage in their companies as well as the pollution of the water. The book explains that water is very sacred in India. Even
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studyPepsi and Coke Learn to Compete in India History Background Coke and Pepsi Learn to Compete in India Case Summary Indian softdrinks Market Six product segments-Economic crisis of 1991 leaving consumers with little choice of brands -1986 “Pepsi Foods Ltd.” “Lehar Pepsi” -1990 Coca-Cola Reenters market with joint venture “Britco Foods” -Later partner with Parle Advertising Pepsi and Coke sponsor TV campaigns‚ Urban Youth‚ Cultural Festivals and Sports Fans. Both Pepsi and Coke look to expand
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we have chosen is Coco Cola India. Coca-Cola India Private Limited re-launched Coca-Cola in 1993 after the opening up of the Indian economy to foreign investments in 1991. Since then its operations have grown rapidly through a model that supports bottling operations‚ both company owned as well as locally owned and includes over 7‚000 Indian distributors and more than 1.3 million retailers. Today‚ their products are the leading brands in most beverage segments. The Coca-Cola Company’s brands in India
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competitive moves between players. This interaction over time should make it easier for a firm to predict the direction and nature of their rival’s next (competitive) move. The authors suggest in Hypothesis 2a that the volatility of the relationship between Coke and Pepsi’s competitive moves would attenuate over time. However‚ they also discuss how it can be argued that firms will engage in
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