Strategic
Management
12
PB
Prof.
ZHENG
Xin
Prof.
ZHANG
Haiyan
Cola
Wars
Continue:
Coke
and
Pepsi
in
the
Twenty-‐First
Century
By
Eugen
Martens
(Student
ID:
14900098)
Gabriel
de
Rauglaudre
(Student
ID:
13946412)
March
8,
2014
Introduction
The
soft
drink
industry
has
been
a
profitable
one
in
spite
of
the
“cola
wars”
between
the
two
largest
players.
Several
factors
contribute
to
this
profitability,
and
these
factors
also
help
to
show
why
the
profitability
of
the
concentrate
production
site
of
the
industry
has
been
so
much
greater
than
the
bottling
side.
Over
the
years
the
concentrate
producers
have
experimented
with
different
levels
of
vertical
integration,
and
although
it
has
not
necessarily
been
clear
which
have
been
more
successful
historically,
some
decision
criteria
can
be
developed
to
help
determine
if
and
when
complete
vertical
integration
is
necessary.
Profitability
in
the
soft
drink
market
As
analysis
using
Porter’s
five
forces
shows
why
the
soft
drink
industry
has
been
so
profitable.
Suppliers
and
buyers
have
not
had
more
power
over
the
industry
than
it
has
had
over
them.
Internal
rivalry,
while
seeming
intense,
has
not...