Case ID: 702442     Solution ID: 32401     Words: 1470 Price $ 45

Cola Wars Continue Coke vs Pepsi in the Twenty First Century Case Solution

Abstract

The opposition amongst Pepsi and Coke has prevailed since the start for both organizations. Normally Coke has been ahead of the pack and Pepsi has exhibited great advertising procedures and techniques keeping in mind the end goal to catch the market and has prevailing with regards to doing as such. The Pepsi Challenge that Pepsi introduced did manage to help Pepsi increase its deals and Coke needed to see a set back and struck back with a price war and all the more publicizing. Be that as it may, the monetary emergency that has influenced the world has additionally influenced the soda business. Demand has fallen in the past and has brought on both organizations to concede to lessening the costs keeping in mind the end goal to boost demand once more. Regardless, the combat zone now has more players and with falling interest and expanding rivalry, Coke and Pepsi need to gadget more grounded systems to win the market once more.

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Questions Covered

1. Why was it that the concentrate producers have been so profitable?

2. Compare the profitability of the concentrate industry to the bottling industry -- why is the profitability so different?

3. What is happening in the soft drink industry? What are the challenges facing the industry?

4. Why was the Pepsi Challenge so successful? How would you evaluate Coke's response?

5. What should Coke and Pepsi do next?

6. How has the competition between Coke and Pepsi affected the industry’s profits?

7. Can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-carbonated soft drinks?