Cola Wars Continue

Cola Wars Continue


 

 

 
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...

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