Class3_Coke_vs_Pepsi - Cola Wars Continue: Coke and Pepsi...

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Unformatted text preview: Cola Wars Continue: Coke and Pepsi in 2006 Coke Announcements: We are fixing the seating chart today. Please pick your seat for the rest of the semester. Please have your name cards out… Team lists due today. Case Questions Case Why is the soft-drink industry so profitable? How has the competition between Coke and Pepsi How affected the industry’s profits? affected Compare the economics of the concentrate Compare business to the bottling business. Why are the differences in profitability so stark? What is causing concentrate producers to integrate vertically into bottling? vertically Will Coke and Pepsi sustain their profits? What Will would you recommend to Coke to ensure success in the future? To Pepsi? in Coke vs. Pepsi - Updates Coke Coke 2007: $29 billion sales, annual growth 19% Pepsi 2007: $39 billion sales , annual growth 12% In 2008, Cadbury spun off its North American In beverage operations as Dr. Pepper Snapple Group. beverage Coke vs. Pepsi – Final words Coke Role of competition in influencing industry structure Price competition in duopoly vs. fragmented industries Competitive convergence Role of company in influencing industry structure Coke and Pepsi managed industry structure by changing size and Coke division of the pie division Investments in brand image Investments created barriers to entry created increased size of and distribution of the pie They also managed bottlers to keep their power low Industry structures are not static Big change may be imminent ...
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This document was uploaded on 11/04/2011 for the course BUSI 471 at UNC.

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