Environmental scanning External environment a. Social b. Political c. Economics d. Natural e. Technological f. Competitive forces analysis The industry’s competition is that Pepsi and Coke was often interchangeably by many consumers expressing their interest in a soft drink. Pepsi in particular‚ is a fierce competitor in the beverage industries with two growing categories which are water and sport drinks. i. Bargaining power of suppliers The main ingredients for Coca-Cola syrup include
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There are many companies that make products that go head to head. Coca Cola and Pepsi are an example of such reveries. There has been many taste test and competitions that involved the soda kings. This reverie has been going on for over a century. (See appendix 1) The start of this long standing soda war began 1886 when creator John S. Pemberton developed the original recipe for Coke. Then 13 years later Pepsi creator pharmacist Caleb Bradham developed his formula. By this time Coca-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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Mid Exam Assigment Coke Versus Pepsi‚ 2001 Analysis Company Background The Coca-Cola Company : In 2000‚ Coca-Cola Company’s (KO) annual sales were $20‚5 Billion and its market value reached $110‚1 Billion. The company was the largest manufacturer‚ distributor and marketer of soft-drin concentrates and syrups in the world‚ and also marketed and distributed a variety of non carbonated-beverage product‚ which included minute maid orange juice‚ Fruitopia‚ Dasani bottled water‚ and Nestea‚ among
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the consumer‚ have had the pleasure of enduring the “Cola Wars” between Coke and Pepsi. This has been an ongoing battle between the big two cola manufactures for over one hundred years. John Pemberton‚ a pharmacist in Atlanta‚ Georgia‚ invented Coca-Cola in 1886; pharmacist Caleb Bradham invented Brad’s Drink‚ later to become Pepsi-Cola‚ in 1893 in New Bern‚ North Carolina. In 1938‚ Coke filed suit against Pepsi‚ claiming trademark infringement. In 1941‚ the court ruled in Pepsi’s favor‚ thus
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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). Over the past century‚ it seems they have feuded over everything from who has superior taste‚ to the pursuit into space‚ and more recently over NASCAR and the social media race. Regardless of who is ahead in the competition‚ the battles between Coca-Cola & Pepsi demonstrate important
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brands. Trade rules & regulations simplified. Foreign investment increased. Pepsi enters in 1986. Coca-Cola follows in 1993. Contd … Slide 14: Unlawful to market under their Western name in India Pepsi became “Lehar Pepsi”. Coca-Cola merged with Parle and became “Coca-Cola India”. Different Laws for Pepsi and Coke Coca-Cola agreed to sell off 49% of its stock as a condition of entering and buying out an Indian company. Pepsi entered earlier‚ and was not subject to this. Contd … Slide 15: India
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A Comparison of the Carbonated Soft Drink‚ Ready-to-Eat Breakfast Cereal and Specialty Coffee Industries Using Porters Five Forces Michael Porter’s framework describes an industry as being influenced by five forces: buyer power‚ supplier power‚ threat of substitutes‚ threat of new entrants and the degree of rivalry between existing firms within the industry. A strategic business manager can use Porter’s model to more clearly understand the industry environment in which its firm operates and to
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generates positive economic profits. The other reason why the soft drink industry is profitable is: * Bottling Network: Coke and Pepsi have agreements with existing bottlers which prevents it from taking on new competing brands. So no scope for future competitors due to high capital costs in setting up a new plant. * Advertising: Huge advertising costs by Pepsi and Coke which cannot be matched up to. * Brand Image/Loyalty: It is virtually impossible for a new entrant to match this scale
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concentrate business‚ most specifically with Pepsi. I will analyze the 5 forces model to determine Coca-Colas overall profitability. The 5 forces model begins by looking at rivalry between established competitors. Coca-Cola has a direct rivalry with Pepsi in the fact that they make and distribute an almost identical product used for the same purposes. Because the concentrate industry‚ or the CSD (carbonated soft drink) industry‚ is dominated by Coke and Pepsi‚ their prices tend to be alike and the
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