a variety of salty‚ sweet and grain-based snacks‚ as well as carbonated and non-carbonated beverages. The company has 19 brands in its portfolio which generate over $1‚000 million each in annual retail sales. Some of these include: Pepsi-Cola‚ Mountain Dew‚ Diet Pepsi‚ Gatorade‚ Lay’s and Tropicana. PepsiCo is headquartered in Purchase‚ New York and employs about 294‚000 people. The company recorded revenues of $57‚838 million during the financial year ended December 2010 (FY2010)‚ an increase of
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higher and isn’t really suitable for Vietnam average income. There are two main environment elements which affect the price of the Gatorade: Micro environment -Competitors: There are many other products to choose in the soft drink market include Pepsi Co product ‚ the different is those products are cheaper than Gatorade * In order to attract more customers‚ Gatorade has improved its product quality and spent lots of money on advertising. -Selling products Gatorade mostly is the imported
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second try at writing them would be to include a breakdown of how they are able to apply to Porter’s five forces. For example‚ it is evident after reading this case that the soft drink industry is an extremely profitable one (especially for Coke and Pepsi). The reasons for this were discussed in class‚ and I will quickly explain each: There are great barriers to entry when trying to dive into the soft drink industry‚ and because of this companies who have a competitive advantage will make it rather
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BUAD497 Strategic Management Fall 2011 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
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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 from the new entries. Capital requirement for an efficient new plant could range as much as $75 million. Both Coke and Pepsi pursued a backward integration strategy‚ buying significant percent of bottling companies‚ and then creating independent bottling subsidiaries such as Coca-Cola Enterprises (CCE) and Pepsi Bottling
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listening to and catering to the requests and needs of its consumers. This is why its attempt to launch new flavors must be carefully considered to ensure not only acceptance by the target market‚ but continued loyalty to the brand. While Coke and Pepsi are the major players in the soft drink competition and by far have seen the most success‚ both have struggled in competition with each other. Recently both companies have introduced their products to the foreign market‚ but in order for either company
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increasingly challenged by Pepsi Cola... • Cola Wars domestically and abroad (See Exhibit 3) C. Cola industry leaders‚ Coca-Cola and Pepsi‚ should practice game theory to better understand their competitive market... • Cola Wars with the well established brands of Coca-Cola and Pepsi. Organization Due to the cola wars both Coca Cola and Pepsi have a similar organizational structure. By... • Cola Wars Continue: Coke And Pepsi In 2006 from the other company to battle with. Pepsi and Coke had a vast
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WEEK 1 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
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In your opinion‚ what was the most significant challenge (or problem) that Coca Cola faced with the Pepsi Challenge? Ans. The most significant challenge faced by Coca Cola was in the late 1970s when the top executives of the Coca Cola actually paid less and less attention to the marketing and sales of their central product and they were making attempt on diversifications‚ and the competitor Pepsi during this period targeted the young generation by strong marketing strategy who were yet not emotionally
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post-liberalization period in India saw the re-entry of Coca-cola. But Pepsi had already gained an edge by creatively entering the market in the 1980’s in advance of liberalization by way of a joint venture. It allowed Pepsi to gain precious early experience with the Indian market and also served as an introduction of the Pepsi brand to the Indian consumer such that it was well-poised to reap the benefits when liberalization came. Though Coke benefited from Pepsi creating demand and developing the market‚ Pepsi’s head-start
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