Strategy ‘Cola Wars Continue: Coke and Pepsi in 2010’ Analysis of the US carbonated soft drinks (CSD) industry (a) Strategic issues The CSD market in the US (approx. $74 billion) is dominated by two concentrate manufacturers – namely Coke and Pepsi –. Both companies have been competing intensely since the 1970s‚ yet have thrived from this competition and have grown the business very profitably‚ as both have benefitted from the CSD market growth rates of around 10% p.a. until the early 2000s
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Dan Sweeney March 7‚ 2012 1. & 2) Short-term: The quick ratio‚ also known as acid-test ratio‚ calculates a company’s cash and accounts receivable divided by its current liabilities. This ratio is a more stringent measure of liquidity than the current ratio in that it excludes inventories and other current assets. Pfizer has a quick ratio of 1.78 while the industry median is 1.21. This shows the company does not rely too much on inventory of other assets to pay for short-term liabilities.
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famous that almost everyone knows about it. It develops so strong image that also has a great effect on the corporate image as well. It is rated as the world’s number one cold drink and is famed for its internationally well-known brand name “Coca-Cola”. Coke is well supported by Coca-Cola Ltd. in the local market and enjoys distinct position. Brand Positioning The brand positioning of the Coca Cola is very strong. Company focuses on the TOM. This top of the mind strategy leads the consumers to remember
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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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Harvard Business School 9-387-108 Rev. June 21‚ 1989 Coca-Cola Versus Pepsi-Cola (A) Coca-Cola and Pepsi-Cola had been competing for 93 years in 1982‚ and the rivalry had intensified since the early 1950s. By the mid-1970s‚ business journalists had labeled this competition "The Cola Wars." The launching of the Pepsi Challenge in 1977 propelled the wars into the 1980s‚ considerably altering the landscape of the soft-drink industry. History of Soft-Drink Concentrate Producers Soft drinks had existed
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Operations management problem in Pepsi Introduction Operations management remains as an important branch of study both in the corporate worldas well as in academics. Talking of academics‚ operations management is an important partof the study in the curriculum of management studies. In other words‚ it is seen that thetheoretical base that a manager or a n executive needs to deal with the problems of thecompany are taught in the curriculum. Operations management is also an important part in anorganization
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industry‚ smaller national producers‚ such as Seven-Up and Dr Pepper‚ are relatively trivial. There are a lot of players of same size in the bottling industry. Unlike the furious competition between Pepsi and Coke‚ no sense of competition can be felt in bottling industry. Reasons are that‚ first‚ Pepsi and Coke control the majority of bottlers in 1990s; second‚ intrabrand competition is restricted by the franchise agreement‚ which is protected by ’Soft Drink Interbrand Competition Act’. From the view
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Cola Wars Continue: Coke and Pepsi in 2006 CSD Industry Overview Coke and Pepsi‚ the two main players in the duopoly market‚ have benefited from average growth of 3% since 1970 in the CSD market. There are many substitutes to CSD’s such as; milk‚ coffee‚ bottled water‚ beer‚ juices‚ tea‚ wine‚ sports drinks‚ and tap water yet American’s drank more soda than any other beverage. Coke and Pepsi competed fiercely for market share and this competition built brand recognition for both companies. Continuous
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Cola Wars Continue : Coke and Pepsi in 2006 1. Why historically has the soft drink industry been so profitable? * High rate of consumption increasing at an average of 3% per year * Increasing availability of CSDs * Introduction of diet and flavoured varieties Year | 1970 | 1975 | 1981 | 1985 | 1990 | 1994 | 1996 | 1998 | 2004 | Consumption in Cases (million) | 3090 | 3780 | 5180 | 6500 | 7780 | 8710 | 9290 | 9880 | 10240 | 2. Compare the economics of concentrated
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Cola Wars Continue: Coke and Pepsi in 2010 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? In the CSD industry‚ the highest net profit-sales ratio of Coke and Pepsi are 21.1% and 14.3%‚ and the steadily growth is also surprising.so the profits are high. The content is water‚ Coke syrup‚ CO2‚ and additives‚ which cost about 10 cents per can‚ nearly next to nothing. What are the primary
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