trying to obtain. Coca-Cola would use forecasting to help determine what the business market looks like demographically. It can also involve attempting to predict the movements of the existing market going forward so market strategies and business plans can be developed to anticipate and meet the changing demands. Many forecasting strategies are used, and each market will have specific models that have worked (Writing, 1999-2012). The recommended market analysis for Coca-Cola would be qualitative
Words: 618 - Pages: 3
revenue from more than just their core beverage. The fierce competition the two Cola Giants created, ensured profitability and world recognition of the American developed carbonated soda. 2. Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? The concentrate business has been historically dominated by large magnates such as Coca-Cola and Pepsi. Data, from the case study, detailing the industry breakdown indicates that
Words: 1960 - Pages: 8
Cola Wars Continue: Coke and Pepsi in 2010 1. The soft drink industry is a billion dollar industry that can turn a profit in less than a minute. There are many factors as to why this is such a profitable industry such advertising and promotions. The two biggest corporations being Pepsi and Coke (who both need each other in this relationship) have battled it out through the years but have always seemed to be level with each other. The reason being that both of these companies compete with each
Words: 972 - Pages: 4
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
Words: 792 - Pages: 4
packaging (bottles and cans), the suppliers of these raw materials have less bargaining power against the concentrate producers (CPs) and bottlers. i. Sugar: Sugar can be obtained from various sources on an open market and if price of sugar increases, the cola companies can easily switch to low price artificial sweeteners or high-fructose corn syrup. Though aspartame, used in diet beverages, gained the bargaining power for time-being while it was under patent protection ii. Cans: With abundant supply of
Words: 1784 - Pages: 8
Cola War Continue: Coke and Pepsi in 2010 The following characteristics are important to conclude the competitive intensity and attractiveness of the CSD industry: the threat of substitute products, the threat of established rivals, the threat of new entrants, the bargaining power of suppliers and the bargaining power of buyers. First, the threat of substitute products such as sports drinks, juice and bottled water is relatively high to the CSD industry due to the shift in consumption patterns
Words: 488 - Pages: 2
In the “Cola Wars Continue: Coke and Pepsi in 2010” the history of Carbonated Soft Drinks (CSD) and its development in modern society illustrates how these two companies advance and compete within an oligopoly market. One of the approaches used in oligopolies is the Game Theory Approach. The basic elements of game theory are (1) the players, (2) the strategies available for each, and (3) the payoff each receives. There are different “battlefields” on which Coke and Pepsi compete: products, pricing
Words: 482 - Pages: 2
Cola Wars The Cola wars really began getting started in the 1970s and 1980s. Pepsi was starting to become popular in the United States and they had effective advertising, like the Pepsi challenge. Coke was outspending Pepsi in advertising by $100 million but was losing market share because it was not as effective. A change for Coke was worth considering. After ninety-nine years of the original formula the top executives agreed to change the taste to a sweeter flavor and take the old Coke off
Words: 330 - Pages: 2
proven to be critical to company performance for both PepsiCo and Coca- Cola India. What specific aspects of the political environment have played key roles? Could these effects have been anticipated prior to market entry? If not, could developments in the political arena have been handled better by each company? Ans. The political environment in India has proven to be critical to company performance for both PepsiCo and Coco-Cola India. Some aspects were: ïŠ Adjustments in the Indian government like
Words: 990 - Pages: 4
04/04/13 Pepsi vs. Coca Cola Debate Julian/aidan Opening statement: Your honor, ladies and gentlemen of the jury, my partner Julian and I are here today, but only one reason to reassure that Pepsi is better than Coca Cola. Pepsi is the better beverage because it consumes less sodium rather than Coca Cola does. Thank you Reason 1. The first reason why Pepsi is the better beverage is because of its low sodium recipe. Of course, the first thing many people think of when they here pop is how unhealthy
Words: 605 - Pages: 3
