9/8/2015

PGDM/MBA Material: Case Study- Cola Wars Continue: Coke and Pepsi in the Twenty-First Century

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Case Study- Cola Wars Continue: Coke and Pepsi in the Twenty-First
Century

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Business Communication
Business Environment
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E- Business

Summary:
"Cola Wars Continue: Coke and Pepsi in the 21st Century” explains the economics of the soft drink industry and its relation with profits, taking into account all stages of the value chain of the soft drink industry. By focusing on the war between Coca‐Cola and PepsiCo as market leaders in this industry – with a 90% market share in carbonated beverages – the study analyses the different stages of the value chain (concentrate producers, bottlers, retail channels, suppliers) and the impact of the modern times and globalization on competition and interaction in the industry.

Analysis:
It is quite clear that there was a “war" between Coca‐Cola and PepsiCo: not only have they been rivals for

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Human Resource Management
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Indian Labour Law
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ages but they have always followed each other’s moves. In the late 1950s, the beginning of World War II,

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both companies started to make it clear in their advertising that competition existed between them, creating

Operation Management

campaigns that recognized the existence of competitors. However, according