Sse Colawars Group4
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  • 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.
    • Introduction
    • The 5 forces analysis
    • Today ’ challenges
    Agenda
  • 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.
    Introduction
  • 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.
    Substitutes
  • 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.
    Conclusion
  • 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: http://www.slideshare.net/adhirock/cola-wars-case
    • www.coca-cola.com
    • www.pepsiamericans.com
    • The Five Competitive Forces that Shape Competitive Strategy, Porter, ME
    References