Pepsi and Coca-cola battle

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Pepsi and Coca-cola battle

  1. 1. Principle of management LIEW SOOK MUN CEB130025 ENDORSED BY DR. MOHAMMED NAZRI
  2. 2. Dealing with competition
  3. 3. COMPANY BACKGROUND
  4. 4. CASE STUDY
  5. 5. How much do you know about the companies?
  6. 6. To be or not to be? That is the question.
  7. 7. We’ve promised America’s parents that we would change the drinks we’re selling in schools. As the consequences, we are the FIRST among the competitors to remove full calories beverages from all schools over 200 countries.
  8. 8. Coca-Cola YES for primary schools upon request YES for secondary & high schools Pepsi NO for primary school NO for secondary & high schools
  9. 9. Don’t take my competitive advantage!!
  10. 10. QUESTION I Map the soft drink industry by using Porter's five industry forces
  11. 11. QUESTION II What are the risks and opportunities of the strategies followed by Pepsi? Or Coca-cola?
  12. 12. SWOT Analysis (STRENGTH) PEPSI COCA- COLA -Strong market position -Solid brand portfolio -Product diversity - Adapting market trends and social changes -Corporate Social Responsibility (CSR) projects -World’s largest market share -High sales revenue -High sale growth -Large capital base
  13. 13. SWOT Analysis (WEAKNESS) PEPSI COCA- COLA -Conflicting interests -No existing customers for new products -Much weaker brand awareness and market share in the world market -High expenses, may have trouble balancing cash-flows -Global awareness of issue for health care may lead to boycotts -Intrapreneurship may not be welcomed - Undiversified product portfolio
  14. 14. SWOT Analysis (OPPORTUNITY) PEPSI COCA- COLA -No government interference such as FDA & ABA -Acquisitions & alliances -Service -Huge and growing market in the healthy products -Brand recognition -Monopolize the competitive advantage
  15. 15. SWOT Analysis (THREAT) PEPSI COCA- COLA -Product recalls -Intense competition -Face losing market share to the competition -Not entirely patentable, constant replicated by competitors -Decline in Carbonated Drink Sales worldwide -Very elastic demand, almost pure competition -hanging health-consciousness of the market could have a serious affect
  16. 16. QUESTION III How would you respond to coca-cola's change in sales policy? How would you ensure Pepsi's board that this response will allow you to remain competitive and profitable?
  17. 17. Suggested Strategies Attack Emphasize the slogan “Why you have to gain fat if you can be slim” Use artificial and natural sweetener
  18. 18. Suggested Strategies Response Collaborate with all schools Employ spokesperson
  19. 19. So as to convince the Pepsi’s board…
  20. 20. We might lose to coca-cola in short terms of revenue. But as long as we are the one who have sustainable competitive advantage, the victory belongs to us.
  21. 21. Conclusion
  22. 22. REFERENCE • www.pepsico.com • www.ameribev.org/files/240_School%20Beverage%20Guidelines%20Final%20Progress %20Report.pdf • http://www.caloriecontrol.org/articles-and-video/feature-articles/what-the-labels-mean • http://www.livestrong.com/article/407494-definition-of-low-fat-low-calorie-low- sodium/ • http://m.cdc.gov/en/HealthSafetyTopics/HealthyLiving/HealthyWeight/HealthyEating/C uttingCalories/rethinkDrink • http://www.ameribev.org/nutrition--science/school-beverage-guidelines/progress- reports/ • BusinessAnd CompetitiveAnalysis by C.S. Fleisher & B.E. Bensoussan • LettingGoWithout Losing Control by J.. Payne & S. Payne • Principle of Management by C.Williams

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