S S E Cola wars group 8

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S S E Cola wars group 8

  1. 1. Cola WarsContinue<br />Will Day #40080 <br />Sofia Hjelm #40092<br /> Oskar Karlsson #40104<br />Julie Miller #40078<br />Sarmad Saleem #70408 <br />Media Management spring 2010<br />Instructor Robin Teigland<br />
  2. 2. Is the concentrate industry profitable?<br />1)<br />
  3. 3. Profitability of the bottlingindustry<br />2)<br />
  4. 4. Conclusions<br />Concentrateproducershavesupplier power over the bottlers<br />The concentrateindustryproducesuniqueproductswhereas the bottlingindustryproductsproducesgenericproducts<br /> Pretax margin<br />Concentrate industry 35 % of sales<br />Bottling industry 9 % of sales<br />
  5. 5. Challenges<br />The five forces analysis enables formulating a better strategy and how to be more profitable<br />International differences <br />Health consciousness <br />Consumer preferences<br />3)<br />
  6. 6. Cola wars<br />The competition between Coke and Pepsi has increased industry profits <br />Increased barriers to entry (high marketing costs)<br />The war has strengthened the entire category <br />The war has made the benefits of the category more emotional which would enable higher prices<br />
  7. 7. Sources<br />Porter ME, ”The fivecompetetiveforces that shapecompetetivestrategy”, HBR 2008<br />Cola warscontinue: coke and pepsi in the twenty-firstcentury, Harvard Business School<br />

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