Yin Dongfang (2014-27148) 1) Why‚ historically‚ has the soft drink industry been so profitable? According to Exhibit 3a‚ the operation profit margin of the two giants kept robust growing from ~10% in 1970s to ~20% in 2005. That probably resulted from two reasons: 1) net sales enjoyed robust growth; 2) COGS and other expenses cowered fast. Net sales enjoyed robust growth. According to Exhibit 1‚ consumption per capita increased by 3% per year lasting for 3 decades since 1970s‚ due to A. Increasing
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Cola Wars Continue: Coke and Pepsi in the Twenty- First Century As given in exhibit 1. Per capita consumption of carbonated soft drinks has rose from 1970 to 1999 but in year 2000 there has been a slight drop in per capita consumption. However if we see the similar data for other drinks‚ there has either been a slight rise or fall in per capita consumption in the year 2000. So the per capita consumption data reveals that other drinks are not necessarily eating up the market share of carbonated
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Alternative solutions: 1. Coca Cola can start using healthy sweeteners like Stevia‚ Agava juice or honey. There is a growing trend of getting closer to nature all around the world. This is in accordance with lifestyle strategy: “Cola is good for you and makes you feel better”. This would make people realize that company cares about their health and way of living. Advantages: * trend of healthy living * lower price sensitivity of the market for healthy or bio food * relatively
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I originally choose Dr. Pepper but I figured I could probably get more research if I use Coke‚ since it is a coke product. Coco was discovered way before "It was 1886‚ and in New York Harbor‚ workers were constructing the Statue of Liberty. Eight hundred miles away‚ another great American symbol was about to be unveiled. Like many people who change history‚ John Pemberton‚ an Atlanta pharmacist‚ was inspired by simple curiosity. One afternoon‚ he stirred up a fragrant‚ caramel-colored liquid
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Fallout…………………………………………………………………..16References………………………………………………………………..…………19Executive SummaryThe Cola Wars between the two industry giants Coca-Cola Company and PepsiCo continues today after over 100 years of rivalry. The competitive strategies of Coca-Cola and PepsiCo have been examined‚ and even though they are different‚ both seemed to have been successful to become the first and second companies in the soft drink industry. Coca-Cola with effective advertising‚ and Pepsi with effective young generation market target
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development of Coke-Cola is quite interesting; the product began as far back as the late 19th century (The Coca-Cola Company Britannica Academic. 2015). In this discussion‚ we shall consider what makes Coke-Cola and such an attractive investment (Ferrell‚ Fraedrich‚ & Ferrell‚ 2015). Furthermore‚ factors that stakeholder considers when addressing investments Coke-Cola itself and its reputation (Ferrell‚ Fraedrich‚ & Ferrell‚ 2015). First a historical look at Coke-Cola; historically the first Coke-Cola was
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Cola wars continue: Coke and Pepsi in 2006 Written by Alyona Kuzmina. Soft drink industry Shares of beverage companies have always been ranked high among other industries. Although‚ when consumer incomes decrease‚ sales of beer and soda don’t drop that much. Additionally‚ it is cheap to produce those and drinks are so popular so companies can sell them for a large price. Actually‚ it is a very unique case‚ that such a product‚ which is in the group of basic commodities‚ is profitable
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Cola Wars Continue: Coke and Pepsi in 2010 Pepsi and Coke fought over the 74 billion CSD (carbonated soft drinks) industry. --> Nothing contribute as much to the success of Pepsi than Coke and vice-versa What had to be done to ensure sustainable growth and profitability? Economics of the U.S CSD Industry 1970 - consumption grew by an average of 3% per year --> increasing availability of CSD + intro of new diet and flavoured variety + Declining real prices --> CSD more affordable -->
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COLA WARS : COKE AND PEPSI IN THE 21ST CENTURY” INTRODUCTION "Cola Wars Continue: Coke and Pepsi in the 21st Century” explains the economics of the soft drink industry and its relation with profits‚ taking into account all stages of the value chain of the soft drink industry. By focusing on the war between Coca-Cola and PepsiCo as market leaders in this industry – with a 90% market share in carbonated beverages – the study analyses the different stages of the value chain (concentrate producers
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Coke Wars Case Analysis: Competition‚ Strategy‚ and Implications Webster University Summer 2012 INTRODUCTION 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).
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