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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known beverage companies‚ Coco-Cola and Pepsi. They have competed considerably and distributed the beverage market profit for several decades. In the open market‚ it is difficult to exactly tell which one is the winner within the perfect competition‚ since both companies use different style of promotion and product to expend their markets. The competitive environment of the carbonated soft drinks started about three decades ago. In the beginning of 1960 Coco Cola was dominating the market but this
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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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Cola Wars: Coca-Cola vs. PepsiCo The Coca-Cola Company has enjoyed a long and successful history; however‚ it has made mistakes. Though success has not always come easy or cheap‚ Coca-Cola has maintained a large loyal consumer base. As an icon in America and around the world‚ the company can be credited for 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
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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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Cola Wars Case Analysis 1. The main way in which my case notes would be different for Cola Wars if I were to have a 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
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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 Wars Pepsico – Profile PepsiCo is one of the world’s leading producers of snack foods and beverages including Pepsi soda. Its principal businesses include: Frito-Lay snacks‚ Pepsi-Cola beverages‚ Gatorade sports drinks‚ Tropicana juices and Quaker foods. PepsiCo brands are available in nearly 200 countries and territories. The company operates in four divisions: PepsiCo Americas Foods (PAF)‚ PepsiCo Americas Beverages (PAB)‚ PepsiCo Europe‚ and PepsiCo Asia‚ Middle East and Africa (AMEA).
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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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