Analysis on Cola Wars Case Threat of New Entrants The threat of new entrants in the soft drink industry is low. Barriers to the CSD industry are extremely high because customers have high brand loyalty towards to either Coke or Pepsi. As the case mentioned‚ Coke and Pepsi spend millions of dollars on advertising even though they are already the dominant companies in the industry. Thus‚ heavy investment on advertising and promotions is necessary for any new entrant to change persisting customers tastes
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QUESTION 1: What “international strategy” and “modes of entry” did COKE/PEPSI use to penetrate the Chinese Market? How effective were these choices? When Chinese markets opened up in 1980’s‚ Coke/Pepsi focussed on defining several strategies to Differentiate‚ Market and distribute their Cola products to Chinese consumers. International Differentiation Strategy: Both used two main aspects of this strategy “Branding” and “Cost Leadership“to force local producers to withdraw from the market or establish
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potential entrants. Of the five forces‚ competition is the highest weight between Pepsi and Coca-Cola. Industry Rivalry • Coca-Cola and Pepsi-Cola claim nearly 75% of the U.S. carbonated soft drinks marker sales volume in 2004. Each are globally established. • Other competitors including Cadbury Schweppes‚ Dr. Pepper/Seven-up Cos.‚ Cott Corporation‚ and Royal Crown Cos. struggle gaining market share due to Coca-Cola and Pepsi-Cola’s tight grip on retailers‚ bottlers‚ and distribution channels. Suppliers
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early 1990s through the acquisitions route. The professional management style of Coca Cola did not jell with the local bottlers. Four CEOs were changed in a span of seven years. Coke could not capitalize on the popularity of Thums Up. Its arch rival Pepsi is well ahead and has been able to penetrate deep into the Indian market. Red in the balance sheet of Coke is becoming thicker and industry observers are of the opinion that it would take at least two decades more before Coke could think of making
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"Acctg-320 group project 11-6 Pop’s Incorporated Variable Raw material cost Ingredient % of formula cost per liter of ingredient Carbonated Water 73.00% $0.08 $0.0584 High Fructose Corn Syrup 11.20% 0.49 0.0549 Sugar 6.30% 0.37 0.0233 Carmel Color 3.00% 1.40 0.0420 Phosphoric Acid 2.70% 0.10 0.0027 Caffeine 2.10% 0.12 0.0025 Citric Acid 1.10% 0.15
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“A COMPARITIVE STUDY ON PREFERENCE OF SOFT DRINKS IN YOUTH REPORT Submitted to: Submitted by: DR. RAJKUMAR CHIRAG GUPTA Roll no. 5382 MBA 5.4 MASTER OF BUSINESS ADMINISTRATION [pic] INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH MDU‚ROHTAK 2010-2011 DECLARATION I Chirag Gupta‚ student of 5 year M.B.A 4th semester of Institute of
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Sprite. In so doing‚ they would trigger a $1 donation -- up to $250‚000 -- to support Boys & Girls Clubs of America. The following statistics point to Coca-Cola having a Competitive Advantage in the marketplace. Coke vs. Pepsi shows Coke having 17% of the Market Share where as Pepsi only had 9.5% . Coke shows having almost twice that of
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Cola wars continue: Coke and Pepsi in 2010 (HBS 9-711-462) a. Use the 5-forces framework to explain why the soft drink concentrate industry has been so profitable. The soft drink concentrate industry has been very profitable for over 100 years. The reason can easily be found by analyzing the concentrate industry using the 5-forces model. According to the 5-forces model‚ each industry’s profitability can be assessed considering the five forces that influence the market – The rivalry among existing
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QUALITY ON THE FLOORS OF PEPSI Established in the Carolinas in 1898‚ Pepsi-Cola has a long and rich history. The drink is the invention of Caleb Bradham‚ a pharmacist and drugstore owner in New Bern‚ North Carolina. This young pharmacist began experimenting with combinations of spices‚ juices‚ and syrups trying to create a refreshing new drink to serve his customers. He succeeded beyond all expectations because he invented the beverage known around the world as Pepsi-Cola. The business began to
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Running head: PEPSI-COLA Ethics and Compliance within Pepsi-Cola TEAM B UNIVERSITY OF PHOENIX CHRISTOPHER WALLACE November 24‚ 2012 Ethics and Compliance within Pepsi – Cola Pepsi-Cola or PepsiCo is a global company that has $510 million in sales and 19‚000 employees in many countries worldwide including Europe‚ Asia‚ Middle East and Africa. PepsiCo was founded in 1965 after Pepsi merged with Frito-Lay. PepsiCo has the philosophy of being committed to delivering sustained growth through
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