Cola Wars Continue: Coke and Pepsi in 2006 1. Why is the soft drink industry so profitable? In an industry dominated by two heavyweight contenders‚ Coke and Pepsi‚ in fact‚ between 1996 and 2004 per capita consumption of carbonated soft drinks (CSD) remained between 52 to 54 gallons per year. Consumption grew by an average of 3% per year over the next three decades. Fueling this growth were the increasing availability of CSD‚ the introduction of diet and flavored varieties‚ and brand extensions
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Cola Wars Continue: Coke and Pepsi in 2010 A case discussion note January 17‚ 2012 1. Historically‚ why has the soft drink industry been so profitable? Historically‚ the soft carbonated soft drink (CSD) industry has been valued at $74 billion in the United States. In order to understand the reasons why the industry has been hugely profitable despite the ‘Cola Wars’‚ an examination of the CSD industry with Porter’s five forces analysis will be conducted. As market leaders‚ the analysis will
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competition within the $74 billion carbonated soft drink (CSD) industry has been remarkable ever since Coca-Cola was formulated in 1886‚ and further intensified when Pepsi was introduced in 1893. Ever since then‚ the CSD industry has been dominated by these two companies‚ with Coke taking the lead in the early stage‚ followed by Pepsi doubled its market share between 1950 and 1970 by offering its concentrate at a lower price than its competitor. The CSD industry has been profitable historically due
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Coke vs Pepsi Week 5 Case Study Question #1 Question #2 Question #3 Question #4 Can you make poor investment decisions and be profitable? What evidence do you see from the companies’ results that indicate how well they made investment decisions (capital budgeting). A company can make poor investment decisions and still remain profitable‚ but only for a time. A company cannot continually make poor investment decisions and remain profitable forever. When looking at the Coke vs Pepsi case study
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Coca-Cola and Pepsi-Cola vied for a “throat share” of the soft drinks market for more than a century. Carbonated soft drinks (CSD) contributed to majority of the revenues in soft drinks. 丁he core market was Ihc United States which had high per capita consumption (see Exhibit 1 for per capita consumption of carbonates in select countries). The Americas accounted for 54% of the global CSD market. Europe for 34.5%‚ and Asia-Pacific for 1 \%.] The industry was characterized by the presence of strong
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www.ajbms.org ISSN: 2047-2528 Asian Journal of Business and Management Sciences Vol. 2 No. 10 [38-50] Analysis of Customer Satisfaction with the Islamic Banking Sector: Case of Brunei Darussalam Mohamed Sharif Bashir Imam Centre for Banking and Finance Al-Imam Muhammad Ibn Saud Islamic University Riyadh 11432‚ Kingdom of Saudi Arabia E-mail: mbelsharif@imamu.edu.sa. ABSTRACT During the last decade‚ the Islamic banking sector in Brunei Darussalam experienced remarkable and increasingly
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Coca-Cola versus Pepsi-Cola: Competitive Strategies Coca-Cola (Coke) and Pepsi-Cola (Pepsi) have been the most popular soft drinks for many years‚ and has also been each other’s biggest competitor. Coke was created in 1885 by John Stith Pemberton‚ a pharmacist‚ and was initially made as a tonic (Smith‚ 2012). In the beginning‚ Coke had cocaine in it‚ which was to fight depression and also make consumers addicted to the drink. In 1904‚ the Food and Drug Administration eliminated the use of cocaine
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Strategy Assignment week two: “Cola Wars Continue: Coke vs. Pepsi in the 1990s” Professor: Orlando Rivero D.B.A. April‚ 3‚ 2008 Cola Wars Continue: Coke vs. Pepsi in the 1990s Overview This paper will explore Porter’s Five Forces ( Porte 6) and Branderburger and Nalebuff’s Value Net to answer this questionnaire and describe soft drinks industry characteristics. The soft drink industry is concentrated with the three major players‚ Coca-Cola‚ Pepsi‚ and Cadbury Schweppes Plc.‚ making up 90 percent
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1. Why do think Larry Stone wants to estimate the firm’s hurdle rate? Is it justifiable to use the firm’s weighted average cost of capital as the divisional cost of capital? Please explain. (10% weighting) Answer The hurdle rate is the rate of return a firm has to offer finance providers to induce them to buy and hold financial security. (Arnold‚2007). This is also known as cost of capital or weighted average cost of capital. The returns offered by alternative securities with the same risk
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Laura Lindroth GBS 235 Paper #1 Prof Cherivtch 21 March 2015 Response Paper: Coke and Pepsi Learn to Compete in India 1. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca-Cola India. What specific aspects of the political environment have played key roles? Could these effects have been anticipated prior to market entry? If not‚ could developments in the political arena have been handled better by each company? There have been several aspects
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