Sse Colawars Group4
Upcoming SlideShare
Loading in...5

Like this? Share it with your network

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads


Total Views
On Slideshare
From Embeds
Number of Embeds



Embeds 3 3

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. Cola wars Coca & Pepsi Group 4 Zhang Yuanyuan : Zhong Wei Chi Mingli Guo Xing
  • 2.
    • Introduction
    • The 5 forces analysis
    • Today ’ challenges
  • 3.
    • 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.
    • 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.
  • 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.
    • Coca Cola and Pepsi Cola hold the most market share.
    • They compete with each other and the competition was fierce.
    Rivalry Condition
  • 6.
    • Existence of Substitute Products
    • Coffee, Juice, Tea, Beer, Milk and so forth
    • Substitute Products become more popular which considered as a threat for CSD companies.
  • 7.
    • Coke and Pepsi are established brands.
    • Good relationship with their retail channels
    • Defending their positions through discounting or other tactics.
    New Entrants
  • 8.
    • Bargaining power is low due to
    • - Many sources on the open market
    • -Creation power of suppliers is low
    • -Lots of major suppliers
    Power of supplier
  • 9.
    • Bargaining power is high for fountain supermarkets and mass merchandising
    • Supermarkets are the main distribution channel
    Power of Buyers
  • 10.
    • The soft drink industry is profitable due to the five forces analysis.
  • 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.
    • Compared with the concentrate business, the barrier of entry is low. Consequently, the profitability s not high
    The bottling business profitability
  • 13.
    • As Coca and Pepsi’s fierce competition, the soft drink will profitability decline due to the promotion and discount competition.
    • Nowadays, there exist so many substitute products, the Coca Cola and Pepsi Cola’s market share and profitability might be affected.
    Today’s challenges
  • 14.
    • Cola Wars Continue: Coke and Pepsi in the Twenty-First Century: DAVID B. YOFFIE
    • Cola Wars Continue: Coke & Pepsi in the 21th century:
    • The Five Competitive Forces that Shape Competitive Strategy, Porter, ME