Universidad Adolfo Ibañez | Cola Wars continue | Coke and Pepsi in the Twenty-First Century | ANÁLISIS 1. ¿POR QUÉ ES LA INDUSTRIA DE LAS GASEOSAS TAN RENTABLE? En el año 2000 el consumo per-cápita de bebidas (soft-drinks) es de 53 galones al año. Lo que representa cerca de un tercio del total de consumo de bebestibles de Estados Unidos. Dentro del mercado de las bebidas, Coca-Cola se mantiene de primero con un 44.1% del mercado, seguido por Pepsi con un 31,4%, concentrando ambos
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Cola War Continue: Coke and Pepsi in 2010 1. Over the century the CSD industry has its dominance in the non-alcoholic beverage market. The basic structure of the CSD industry is based on production and distribution, involving four participants: concentrate producers, bottlers, retail channels and suppliers. The concentrated manufacturing process requires a small capital investment for machinery, overhead and labor. They blend raw material ingredients, packaged the mixture and ships to bottlers
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Cola Wars Continue 1. The soft drink industry has been so profitable due to a plethora of reasons including: 1) direct distributors for companies; 2) low costs to produce concentrate for fountain sales and bottling; 3) utilizing their own subsidiaries to bottle, package, and produce concentrate; 4) tactical brand partnerships that allow penetration in mixed markets; 5) companies monopolizing pouring rights with exclusive chains through contracts ensuring profits with no competition. The leading
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COLA WARS: GOING GLOBAL 1. Reading synthesis The Harvard Review article discuss how the 2 most successful cola companies, Coca Cola and Pepsico, had been struggling in the market since they started their operations. The interesting part is how it explained how each one of the companies developed their market in different countries. In this case, it explained the companies history in Mexico, China and India. What I think is more important to understand is that each country has different
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Cola Wars Continue: Coke and Pepsi in 2010 Analysis of Case: HBS Case 9 – 711 – 462, May 26, 2011 Coke and Pepsi are part of an oligopoly market. They are and have been the two largest producers of CSDs since the 50’s and have been competing since the early 1900’s. Coke created a barrier to entry into the market in the early days by trademarking its secret formula and going to “battle” with several imitators which they won; including Pepsi in 1938, which they lost. Coke, as the larger
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La guerra de las colas continua: Coca Cola y Pepsi en el 2010. Por más de un siglo, Coca Cola y Pepsi compiten por la “participación de gargantas” en el mercado mundial de los bebestibles. Las batallas más intensas en la llamada guerra de las colas fueron luchadas por la industria de las bebidas carbonatadas de USA de más de U$ 74 billones. En una “lucha de competencia cuidadosamente librada” que duró desde 1975 hasta mediados de la década de los 90, Coca Cola y Pepsi alcanzaron un crecimiento anual
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12 COLA WARS CASE Table of contents Introduction……………………………………………………………3 Question no. 1…………………………………………………………4 Question no. 2………………………...……………………………….4 Question no. 3………………………………………………………….7 Question no. 4………………………………………………………….9 Bibliography …………………………………………………………10 INTRODUCTION Over the years Coke and Pepsi managed their rivalry in the carbonated soft drinks (CSD) industry by following some of the tactics identified below. Both companies came up on the market with
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Bottling business Compare the economics of the concentrate business to the bottling business: why is the profitability so different? (50%) Pepsi-Cola and Coca-Cola were both established at the very end of 19th century. Their history is more than a hundred years old and the size of these two companies is huge. Both of them work in the consumer goods industry providing beverages and other drinks to the customers (http://www.thecoca-colacompany.com/ourcompany/historybottling.html) . Pepsi and Coke
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Based on the case “Cola Wars Continue: Coke and Pepsi in 2010,” use game theory approach/analysis to explain the competitive behavior of Coke and Pepsi making specific references to actions taken by each firm and the different “battlefields.” What conclusions can you draw about the competitive strategies pursued by both companies? At the time the Case was written was there a winner? Should both companies have acted differently? The game theory approach used between the two CSD giant Coke and Pepsi
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Cola Wars Continue: Coke and Pepsi Case Analysis 1. Soft Drink Industry (SDI) overview The industry considered in this analysis is Soft Drink Industry (SDI). SDI serves customer needs for refreshing and cold non-alcoholic beverages, with main industry sectors being: carbonated drinks, fruit punches, and bottled water sectors. There are three dominant companies in the industry, namely: Coca-Cola, Pepsi, and Schweppes. The soft-drink industry includes the following four major types of participating
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