These bottles are then packed and sent to the destination areas from where they reach the middle man or and as a result,to consumers.
In order to keep their CSD product lines alive, they started searching for alternatives. Both companies implemented a franchise bottling system where they sold their special formula concentrate to bottlers nationwide who were responsible for creating the end product and delivering it to the various retail accounts.
A major looming challenge that faces Coca-Cola and Pepsi is to not drive down the profitability of the non-CSD industry through competition as they had done with the CSD industry.
What was the logic of the franchise system. Both Pepsi and Coca-Cola recipes are now trade secrets. The keys are rivalry and suppliers: Widely applicable lessons One of the most important lessons to be learnt from the Cola Wars case is that managers can have an impact on the structure of their industry and how they manage the competition with their biggest competitors.
Who has won the cola wars. Coke and Pepsi own the brand and control product development; Dedicated bottlers leverage economies of scope in distribution selling to same outlet, same trucks. Fanta, Sprite, Diet Coke and Pepsi with: Bargaining power of customers Since the beverage industry is mainly dominated by few developed brands, therefore the consumers buy the product and are less focused on the prices.
The raw material costs are also not too high therefore,at this stage there is less costhowever,it involves the basis that is created for the beverage.
Value chain analysis In making the value chain analysis, there are two different elements, which are concentrated producers and bottlers.
Prices on concentrate have not been affected since the early s Exhibit 5. Based on exhibit 2, Coca-Cola Company controls Major Themes Underlying economics of an industry: What are the potential drivers of structural change.
Inc entering the industry, I fear that the non-CSD industry will suffer the same fate of its counterpart. Their operations required minimal amounts of capital investment in comparison to the bottlers. Relationship to profits Different stages of the value chain in an industry: Starting in the earlyU.
Cola Wars Continue Prof. Competition is focused largely on: Opening Questions In such a profitable industry see Exhibit 4why have so few firms successfully entered this business over the last century. Bottlers add carbonated water, bottle or can the mixture and deliver it to the retail channels.
Moreover, thereis low fixed cost involved in it and lower capital investment. Cola Wars Continue: Coke and Pepsi in the Twenty-First Century C. Cola industry leaders, Coca-Cola and Pepsi, should practice game theory to better Harvard Business School, July 30, Exhibit Two – Macroenvironment Analysis (p 92) Technological Environment: Innovations in computerized technology could affect the bottling process.
Cola Wars Continue: Coke And Pepsi In Case Solution,Cola Wars Continue: Coke And Pepsi In Case Analysis, Cola Wars Continue: Coke And Pepsi In Case Study Solution, Case Analysis Historical Analysis of soft drink industry The soft drink industry has been profitable because the people or the consumers are less health co.
Cola Wars Continue: Coke vs. Pepsi in the Twenty-First Century Coke vs. Pepsi in the Twenty-First Century case study.
David B. Yoffie The most intense battles of the cola wars were fought. The 'Cola Wars Continue: Coke and Pepsi in ' case examines the industry structure and competitive strategy of Coca-Cola and Pepsi over years of rivalry.
Cola Wars Continue: Coke and Pepsi in case analysis, Cola Wars Continue: Coke and Pepsi in case study solution, Cola Wars Continue: Coke and Pepsi in xls file, Cola Wars Continue: Coke and Pepsi in excel file, Subjects Covered Competitive strategy Corporate strategy Industry analysis Industry structure Market.
Feb 12, · Jeff Dyer, Brigham Young University BUSM Lecture 1/15/Cola wars hbs