Cola Wars Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? The returns received by concentrate producers differ from those received by bottlers for several reasons … Concentrate producers: Capital investment. Concentrate production business is less capital intensive than bottling. It requires less funds to be invested in machinery‚ labor and modernization. "A typical concentrate manufacturing plant cost about $25 million
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Cola Wars Continue: Coke and Pepsi in 2006 other beverage. Within the CSD category‚ the cola segment maintained its dominance‚ alihough its market share dropped from 71% n 1990 to 60% in 2004.5 Non-cola CSDs included lemon/lime‚ citrus‚ pepper-type‚ olange‚ root beer‚ and other flavors. CSDs consisted of a flavor base (called "concentrate")‚ a sweetener‚ and carbonated water. The production and distribution of CSDs involved four major participants: concentrate producers‚ bottlers‚ retail drannels
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1. Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? The reason why their profitability is so different can be known by the fact that the costs they have to meet differ greatly. The concentrate producers need lower cost for building a manufacturing plant about $25 million to $50 million‚ and just one plant is needed. Concentrate producers pay the costs for advertising‚ promotion‚ market research‚ and bottler support. They
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Session 3: Cola Wars Continue: Coke and Pepsi in 2010 Sun Hyun Park‚ Ph.D. Assistant Professor Marshall School of Business University of Southern California “Cola Wars” Blind Test “Can you tell the difference?” Student A 1: Coca Cola Student B 1: Big K Cola (Kroger) 2: Pepsi 3: Coca Cola Student C 1: Pepsi 2: Pepsi 3: Big K Cola (Kroger) 2: Coca Cola 3: Big K Cola (Kroger) Agenda for Today • Recap - Value chain analysis - Five Forces Model • Case Discussion: Cola Wars - Industry
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9-706-447 REV: APRIL 16‚ 2009 DAVID B. YOFFIE Cola Wars Continue: Coke and Pepsi in 2006 For more than a century‚ Coca-Cola and Pepsi-Cola vied for “throat share” of the world’s beverage market. The most intense battles in the so-called cola wars were fought over the $66 billion carbonated soft drink (CSD) industry in the United States.1 In a “carefully waged competitive struggle” that lasted from 1975 through the mid-1990s‚ both Coke and Pepsi achieved average annual revenue growth of around
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This report is based upon the information from the Harvard business case: “Cola Wars Continue: Coke and Pepsi in the Twenty-First Century”. Both Coca Cola Company and PepsiCo are the largest players in the Carbonated Soft Drinks (CSD) industry. The purpose of this report is to gain insight into the possible strategies that can be applied‚ in order to expand the overall throat share in the future. History revealed that a highly competitive strategy that was utilized in the past by both companies resulted
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PRINCIPLE OF STRATEGIC MANAGEMENT Cola Wars (Coke and Pepsi 2010) Case Study - Week 4 (S42166755) 1. Compare the competitive dynamics of the concentrate business to that of the bottling business? Why is the profitability so different? By using Five Forces Model by Michael Porter‚ it will shows competitive dynamics in the industry. Therefore‚ to define everything further this model will be used to do the comparison between concentrate business (CB) and bottling business (BB). • Barriers to entry
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Michelle Ramirez Mgmt. 449_06 9/9/14 Case Study: Cola Wars Continue Coca-Cola and Pepsi-Cola have long competed for market share of the world’s beverage market. As the cola wars continued into the twenty-first century‚ Coke and Pepsi faced new challenges: Could they boost flagging domestic cola sales? Where could they find new revenue streams? Was their era of sustained growth and profitability coming to a close‚ or was this apparent slowdown just another blip in the course of Coke’s and
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DISCUSSION STRUCTURAL FORCES EFFECTS on COLA DRINKS INDUSTRY SUPPLY CHAIN by GIDAGA ALFRED HOOO31960 ABSTRACT Carbonated soft drinks branded under Coca Cola and Pepsi Cola remain major household names in the soft drinks industry. Spanning operation from the original Franchise agreement of 1899 to-date‚ is an indication of managerial ingenuity of strategy design‚ implementation and control. Profitability and sustainability as a key issue in business operations necessitates these value chain
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9-711-462 REV: MAY 26‚ 2011 DAVID B. YOFFIE RENEE KIM Cola Wars Conti inue: Coke an Peps in 201 C nd si 10 Fo more than a century‚ Co and Pepsi vied for “th or oke hroat share” o the world’s beverage m of s market. The most intense battles in the so-called col wars were fought over the $74 billio carbonated soft m b la e on drink (CSD) indus stry in the Un nited States.1 In a “carefu ully waged co ompetitive str ruggle” that l lasted from 1975 through the mid-199
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