great success by maintaining high standards in both its internal and external operations. Also, a series of major acquisitions have put DPS in the prime position to compete with its competitors such as Pepsi Co. and Coca Cola. Considering this company originally began selling a cola type beverage and has now branched off into selling fruity sodas as well as fruit juices. These decisions have allowed DPS competitive and at times, ahead of the curve business wise, by offering consumers a vast array of
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Study- Cola Wars Continue: Coke and Pepsi in the Twenty-First Century www.mbapgdmstuff.blogspot.com Home Human Resource Marketing Information system management Images You are visitor # Case Study- Cola Wars Continue: Coke and Pepsi in the Twenty-First Century 110,588 Search This Blog Translate Select Language ▼ Category Assignment Business Communication Business Environment Business Law Case Study Compensation MAnagement E- Business Summary: "Cola Wa
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market was itself growing consistently from year to year. 3. Sđâsdư • Product Policies Catering to Indian tastes: entering with products close to those already available in Indian such as colas, fruit drinks, carbonated water. Waiting to introduce American type drinks: Coca-Cola introducing Sprite recently Introducing new products: bottled water • Promotional Activities Both advertise and use promotional material at Navartri: Pepsi gives away premium rice and candy
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clusive use at Institute of Management Technology, Hyderabad (IMT,HYD), 2015 9-702-442 REV: JANUARY 27, 2004 DAVID B. YOFFIE Cola Wars Continue: Coke and Pepsi in the Twenty-First Century For over a century, Coca-Cola and Pepsi-Cola vied for “throat share” of the world’s beverage market. The most intense battles of the cola wars were fought over the $60-billion industry in the United States, where the average American consumed 53 gallons of carbonated soft drinks (CSD) per year. In
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Cola Wars Continue Description: The competition between Coke and Pepsi is a classic corporate battle, which began in America at the turn of the century and has expanded into worldwide competitive warfare in the 21st century. We will use the case to examine competition and strategy in the carbonated soft drink industry. 1. Why has the carbonated soft drink (CSD) concentrate industry been so profitable for Coke and Pepsi over many decades? * Soft drinks industries have so profitable because
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Pepsi and Coca-Cola serve as prime examples of major competitors in the beverage industry and strive to be different although each company produces a similar product. With the popularity of these corporations at the zenith of existence, each one needs to develop and maintain a competitive advantage that will yield results to their favor. For the purpose of gaining a competitive advantage measurement guidelines will need to be implemented to cultivate effective strategic planning and measure the effectiveness
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Compare the economics of the concentrate business to that of the bottling business. Structurally, why is the profitability so different (i.e., think five forces)? Threat of New Entrants: Low, in case of concentrate business because the existing concentrate producers enjoy high brand loyalty. Although the monetary switching costs are very low the economic barrier is very high because of brand loyalty. The significant costs incurred would be advertising, promotion, market research and bottler support
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Suppliers – Weak The ingredients the concentrate producers use are cheap and easy to get. There are a lot of substitutes available if the supplier threatened to raise his price. “Concentrate producers required few inputs: the concentrate for most regular colas consisted of caramel coloring,” Power of Buyers – Medium The power of buyers depends over which distribution channel we are talking about. For example the mass merchandiser category had high buyer power because they also sold their own private-label
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the US Carbonated Soft Drink (CSD) Industry • • • Americans consumed 23 gallons of CSDs annually in 1970 Consumption grew by 3% per year over the next 3 decades Increasing availability of CSDs and introduction of diet and flavored varieties Non-cola CSDs were introduced • Production & Distribution of CSD 1. 2. 3. 4. Concentrate producers Bottlers Retail channels Suppliers 1. Concentrate Producer • • • • • • Blended raw material ingredients, packaged the mixture, shipped
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premium juices and soft drinks. PepsiCo offers products to over 200 countries and territories, and our Global Brands are our biggest sellers. Pepsi is a carbonated soft drink sold in stores, restaurants, and vending machines internationally. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Pepsi is one of the world’s most iconic and recognized consumer brands globally. Today, the Pepsi portfolio includes three products - Pepsi, Diet Pepsi and Pepsi MAX — that
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