Cola wars Coca & Pepsi Group 4 Zhang Yuanyuan : 70381@student.hhs.se Zhong  Wei :70382@student.hhs.se Chi  Mingli :70365@s...
<ul><li>Introduction </li></ul><ul><li>The 5 forces analysis </li></ul><ul><li>Today ’  challenges </li></ul>Agenda
<ul><li>For over a century, Coca-Cola and Pepsi-Cola vied for “throat share” of the world’s beverage market. From 1975 to ...
The Concentrate business   the industry incumbent/rivals   The soft drink producers   P ower of suppliers Low P ower of  b...
<ul><li>Coca Cola and Pepsi Cola hold the most market share. </li></ul><ul><li>They compete with each other and the compet...
<ul><li>Existence of Substitute Products </li></ul><ul><li>Coffee, Juice, Tea, Beer, Milk and so forth </li></ul><ul><li>S...
<ul><li>Coke and Pepsi are established brands. </li></ul><ul><li>Good relationship with their retail channels  </li></ul><...
<ul><li>Bargaining power is low due to </li></ul><ul><li>- Many sources on the open market </li></ul><ul><li>-Creation pow...
<ul><li>Bargaining power is high for fountain supermarkets and mass merchandising  </li></ul><ul><li>Supermarkets are the ...
<ul><li>The soft drink industry is profitable due to the five forces analysis.   </li></ul>Conclusion
The Bottler business   P ower of suppliers Low 高 the industry incumbent/rivals   The soft drink producers   Barriers of en...
<ul><li>Compared with the concentrate business, the barrier of entry is low. Consequently, the profitability s not high </...
<ul><li>As Coca and Pepsi’s fierce competition, the soft drink will profitability decline due to the promotion and discoun...
<ul><li>Cola Wars Continue: Coke and Pepsi in the Twenty-First Century: DAVID B. YOFFIE </li></ul><ul><li>Cola Wars Contin...
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Sse Colawars Group4

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Media Management 2009 Group 4 Assignment (KTH&SSE)

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Sse Colawars Group4

  1. 1. Cola wars Coca & Pepsi Group 4 Zhang Yuanyuan : 70381@student.hhs.se Zhong Wei :70382@student.hhs.se Chi Mingli :70365@student.hhs.se Guo Xing :70368@student.hhs.se
  2. 2. <ul><li>Introduction </li></ul><ul><li>The 5 forces analysis </li></ul><ul><li>Today ’ challenges </li></ul>Agenda
  3. 3. <ul><li>For over a century, Coca-Cola and Pepsi-Cola vied for “throat share” of the world’s beverage market. From 1975 to 1995, Coke and Pepsi achieved average annual growth of around 10%. However, in the late 1990s, CSD consumption dropped and worldwide shipments slowed for both Coke and Pepsi. </li></ul><ul><li>As the cola wars continued into the 21st century, the cola giants faced a large number of challenges but biggest of them were to modify their bottling, pricing, and brand strategies. </li></ul>Introduction
  4. 4. The Concentrate business the industry incumbent/rivals The soft drink producers P ower of suppliers Low P ower of buyer s High (低) Barriers of entry High Threats of substitutes High( 中,在升 )
  5. 5. <ul><li>Coca Cola and Pepsi Cola hold the most market share. </li></ul><ul><li>They compete with each other and the competition was fierce. </li></ul>Rivalry Condition
  6. 6. <ul><li>Existence of Substitute Products </li></ul><ul><li>Coffee, Juice, Tea, Beer, Milk and so forth </li></ul><ul><li>Substitute Products become more popular which considered as a threat for CSD companies. </li></ul>Substitutes
  7. 7. <ul><li>Coke and Pepsi are established brands. </li></ul><ul><li>Good relationship with their retail channels </li></ul><ul><li>Defending their positions through discounting or other tactics. </li></ul>New Entrants
  8. 8. <ul><li>Bargaining power is low due to </li></ul><ul><li>- Many sources on the open market </li></ul><ul><li>-Creation power of suppliers is low </li></ul><ul><li>-Lots of major suppliers </li></ul>Power of supplier
  9. 9. <ul><li>Bargaining power is high for fountain supermarkets and mass merchandising </li></ul><ul><li>Supermarkets are the main distribution channel </li></ul>Power of Buyers
  10. 10. <ul><li>The soft drink industry is profitable due to the five forces analysis. </li></ul>Conclusion
  11. 11. The Bottler business P ower of suppliers Low 高 the industry incumbent/rivals The soft drink producers Barriers of entry Low 高 P ower of buyer s High Threats of substitutes High 低
  12. 12. <ul><li>Compared with the concentrate business, the barrier of entry is low. Consequently, the profitability s not high </li></ul>The bottling business profitability
  13. 13. <ul><li>As Coca and Pepsi’s fierce competition, the soft drink will profitability decline due to the promotion and discount competition. </li></ul><ul><li>Nowadays, there exist so many substitute products, the Coca Cola and Pepsi Cola’s market share and profitability might be affected. </li></ul>Today’s challenges
  14. 14. <ul><li>Cola Wars Continue: Coke and Pepsi in the Twenty-First Century: DAVID B. YOFFIE </li></ul><ul><li>Cola Wars Continue: Coke & Pepsi in the 21th century: http://www.slideshare.net/adhirock/cola-wars-case </li></ul><ul><li>www.coca-cola.com </li></ul><ul><li>www.pepsiamericans.com </li></ul><ul><li>The Five Competitive Forces that Shape Competitive Strategy, Porter, ME </li></ul>References
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