1. Why historically, has the soft drink industry been so profitable?
2. Compare the economics of the concentrate business to that of the bottling business. Why is the profitability so different?
3. How has the competition between Coke and Pepsi affected the industry profits?
4. Can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-CSD’s?
5. What measures will you use to size the market for Coca-Cola (to count the buyers—to arrive at the dollars they will spend)?
a. Based on these measures, what is the size of the market globally (in this industry): in the target country (China)?