Based on the case “Cola Wars Continue: Coke and Pepsi in 2010‚” use game theory approach/analysis to explain the competitive behavior of Coke and Pepsi making specific references to actions taken by each firm and the different “battlefields.” What conclusions can you draw about the competitive strategies pursued by both companies? At the time the Case was written was there a winner? Should both companies have acted differently?Based on the case “Cola Wars Continue: Coke and Pepsi in 2010‚” use game
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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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Why and how can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-carbonated drinks? The ‘Cola Wars’ have through the years shown the intense competition between Coca-Cola and PepsiCo. While the competition to gain new market share may no longer be as intense‚ the two companies are still fighting to remain relevant with a continued demand of their products. As the U.S. has shown an interest in non-carbonated drinks‚ domestic demand for carbonated
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http://www.dea.unipi.it/staff/e.giuliani/downloads/CocaPepsi.pdf Cola wars continue: coke and pepsi in 2012 $74B carbonated soft drink industry in the US 1975-1990s‚ coke and pepsi both earned average annual revanue growth of around 10%. In 2000‚ us per capita CSD consumption declined. 2009‚ average American drank 46 gallons of CSD per year‚ loest since 1989. Coke suffered from operational setbacks Pepsi charterd new‚ aggressive course in altnerative beverage and snack Challenges Boost
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Cola Wars (Porter’s Five Forces) Barriers to entry The barriers to entry are high for new companies; therefore‚ the threats of new entrants are low. For example‚ retailers enjoy significant margins for their bottom-line. This makes it tough for the new entrants to convince retailers to substitute their new products for Coke and Pepsi. There are an economy of scale‚ high required investment‚ high costs for advertising and marketing promotion‚ high channels of distribution‚ and high products differentiation
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packaging and sweeteners and it accounts for high portion of sales. However‚ the bottlers are allowed to handle the non-cola brands as well and they have the right to decide on final retail pricing; and top bottlers get contribution from the main companies such as Coca-Cola. 2. How has the competition between Coke and Pepsi affected the industry’s profits? In the 1980s‚ Cola Wars between Coke and Pepsi started to heat up. To get more profits than the other‚ they tried in doing so many things
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Cola War Soft drinks are profitable because it is a $60 billion industry in the United States alone. Not only is it profitable in the United States‚ but both Pepsi and Coca-Cola have expanded their franchises internationally and both have become competitive brands. It is estimated that the average American can consume about 53 gallons of carbonated soft drinks a year. According to the article‚ Americans drink more soda than any other beverages on the market today‚ such as sports drinks‚ juices
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HTM 4101 Strategic Management Cola Wars case study – Five forces analyses Concentrate producers: Bargaining power of buyers: Refer to the case‚ direct buyer is the bottler and indirect buyers are the end consumer and suppliers such as supermarkets and other outlets. Bargaining power of buyers for concentrate producers refers to the bargaining power of the bottlers. From the industry perspective‚ it is true that bottler could choose to switch their concentrate producers. Bargaining power
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was spending less money and gaining market share‚ what were they doing right? Research is an essential step in advertising because money cannot be wasted‚ there are many other uses within the company which money could be used for. In order for Coca-Cola to improve the above stated problems and improve their marketing research‚ the company could do a number of things. When the flavor changed of Coke‚ many were upset about this‚ even though a study was done to determine if the change should happen.
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and competition are ultimately responsible for industry profitability‚ an analysis of the five competitive forces offers an explanation for the success of the soft drink (CP) industry. The soft drink industry benefits from generally benign forces. Colas characterized the first 50+ years of the soft drink industry‚ with Coke and Pepsi accounting for the top brand names. While substitutes for soft drinks certainly exist‚ the major players in the CP industry have successfully shaped this competitive
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