Coke and pepsi in 2010 case examines the industry structure and competitive strategy of coca cola and pepsi over 100 years of rivalry. On the other hand, the cp industry has pepsi and coke to integrate bottlers. Now, 125 years later, the coca cola company has over 100,000 employees and nearly 3500 soft drink brands 1. Pepsi fired the first salvo more than 40 years ago when it challenged its more established competitor in a taste contest that forced coke to naively alter its winning formula and launch new coke. However, in 2002, spurred by the continued lobbying of jones and. Coke and pepsi in the twentyfirst century, harva rd. Coca cola was already selling a million gallons per year by the time pepsi came to be cnntees coke developed its iconic contour bottle, got big name endorsements and expanded to europe. Pepsi in the twentyfirst century case study analysis, subjects covered corporate strategy industry analysis industry structure international business by david b.
During the peak of the cola wars, as coca cola saw its flagship product losing market share to pepsi as well as to diet coke and competitors products, the company considered a change to the beverages formula and flavor. While coca cola is on the 6th rank of forbess most valuable brands, pepsi stands at the 29th position. But the cost of a large plant with multiple lines and automated warehousing could reach hundreds of millions of dollars. The shift towards foreign markets as a financial concern is likely to continue. In april 1985, the coca cola company introduced its new formula for coca cola, which became popularly known as new coke. That case, which i wrote with sharon foley, was called, the cola wars continue.
Case study written by ipek egmen 4 and this is where most of cokes business has always been. Cola wars continue coke and pepsi in the twenty first century. September 27th, 2005 cola wars case questions download as word doc doc docx pdf file cola. Executive summary for over a hundred years, coca cola and pepsi have been engaging an intense cola war, fighting over the most significant market share in the carbonated soft drink industry. Coca cola strategic plan the coca cola company embodies american ingenuity and capitalism. Pepsi in the 1990s cola wars industry, smaller national producers, such as sevenup and dr pepper, are relatively trivial. The rivalry between the soda giants, also known as the cola wars, began in the 1960s when coca cola s dominance was being increasingly challenged by pepsi cola. Pepsi and coke have historically dominated the carbonated soft drink csd market while competing fiercely with each other for market share in the u. The launch of coke life soda stream takes on coke and pepsi cola wars continue. But in the late 1990s, pepsi began a successful campaign to gain from its bottlers. Coke and pepsi in the twentyfirst century for over a century, coca cola and pepsi cola vied for. Unlike the furious competition between pepsi and coke, no sense of competition can be felt in bottling industry. Coke and pepsi in 2010 case study reexamines the competitive environment between coca cola and pepsi over a period of a century. Coke and pepsi in 2010 case study the beverage market is actively developing not only in the united states but also globally.
Pepsi by 1990 was forced to imitate coke by regulating the bottlers without owning them because the commercial venture was not profitable chura, 2003. Finally, the bottling industry does not have giants who are able to penetrate into the cp industry. The competitive environment between the rivals was intense and wellpublicized, forcing both companies to continuously establish and implement strategic variations as a means to. In a carefully waged competitive struggle, from 1975 to the. As the cola wars continued into the 21st century, coke and pepsi faced new. The cola wars, which describes the ongoing battle between coca cola and pepsi for supremacy in the soft drink industry. The bottler consolidation of the 1990s made smaller concentrate producers. Brand compatibility, relationship power, and life satisfaction. Pepsi in the 1990s case study is a harvard business school hbr case study written by david b. Pepsi in the 1990s case solution, cola wars continue. In fast food we have mcdonalds vs burger king and in tech apple and samsung have faced off for years. Pepsi in the 1990s cola wars essay by rainbow2000, university, masters, a, march 2004 download word file, 8 pages download word file, 8 pages 4. This cozy relationship was threatened in the late 1990s, however, when us csd. It was slow to diversify beyond this, whereas pepsi had far more vigorously done so, even beyond noncarb drinks into the snack market with its fritolay division.
Ermp cola wars free download as powerpoint presentation. Coke and pepsi in the twentyfirst century find, read and cite all the research you. Pepsi introduced beat coke theme pepsi introduced 26ounce bottle, targeting family consumption. Widely applicable lessons one of the most important lessons to be learnt from the cola wars case is that managers can have an impact on the structure of their industry and how they manage the competition with their biggest competitors. The rivalry between coca cola and pepsi is legendary and for more than a century, they have been. Subscribe to the national to watch more videos here. By focusing on the younger population pepsi narrowed cokes lead to a 2to1. Blind taste tests indicated that consumers seemed to prefer the sweeter taste of rival pepsi, and so the cocacola recipe was reformulated. An internal analysis of cocacola is performed to understand the. Referring to the carbonated soft drink csd segment, it is important to focus on the prolonged competition between coke and pepsi in the market. Pepsi in the 1990s case solution, the competition between coke and pepsi is a classic corporate battle that began in america at the turn of the century and expanded globally competitive war. The competition between coke and pepsi is a classic corporate battle that began in america at the turn of the century and has expanded into worldwide competitive warfare in the 1990s.
Threat of new entrants is the second weakest force for the cp industry. Starting in the late 1990s, the two companies faced new challenges with a decline in the sale of fizzy drinks and. Cola wars in terms of evaluation, had tools that will be utilized to evaluate the case including the five porters forces and swot analysis. This case examines the economics of the soft drink and bottling industries, and describes the history and internationalization of the cola wars. Cola has been a catalyst for social interaction and inspired innovation. A strong cola wars continue coke and pepsi in recommendation must cover the key areas as how the organization will implement the alternatives, what benefits will it receive if it implement the when alternatives and what could be the cost, that he organization will need to overcome or address, in order to effectively implement the alternatives. Pepsi intense competition between pepsi and cocacola has characterized the softdrink industry for decades.
Whether two industries are profitable depends on soft drink consumption, which had increased for more than 20 years and plateaued in the 1990s. Coke and pepsi in 2010, chinese version cola wars continue. There are a lot of players of same size in the bottling industry. Coke vs pepsi case study solution cola wars bohatala. Oct, 2016 cola wars coke vs pepsi harvard business school case study 1. Cola wars coke vs pepsi harvard business school case study 1. Cola wars continue coke vs pepsi in the 1990s case. Oct 02, 2018 coke and pepsi are both expanding their product lineups and increasing their ad spending to attract more consumers. Since its inception in 1887, coca cola has provided happiness and prosperity to the world. It discusses the rivalry between the two biggest manufacturers and suppliers of carbonated soft drinks csd. Since its birth at a soda fountain in downtown atlanta, georgia, in 1886, coca. In a carefully waged competitive struggle, from 1975 to the mid 1990s, both coke and pepsi had achieved average annual growth of around 10%, as both u. Harvard business school case 706447, 2006revised may 2011. For reference mcdonalds supersize coke was 42 ounces.
Daily chart the cola wars made pepsi and coke the worlds. Case answers for the cola wars continue case study, which describes the competition between pepsi and coke. Till the mid1990s, researchers had used ad holic scales or personality. Jan 14, 2020 on the traditional soda front, though pepsi has had a considerable share of the market, it would be fair to say that coca cola has had an edge. Pepsi in the 1990s executive summary cola wars continue. Cola wars coke vs pepsi harvard business school case study. In a carefully waged competitive struggle, from 1975 to 1995 both coke and pepsi had achieved average annual growth of around 10% as both u. For over a century, coca cola and pepsi vied for throat share of the worlds beverage market.
There are two suppliers and one buyer involved in its value chain exhibit 1. Pepsi in the 1990s case analysis, cola wars continue. History of coca cola coca cola was formulated in 1886 by john pemberton pharmacist. Aug 18, 2019 with rob baskin, katie bayne, michael beindorff, john belushi.
Pepsi in the 1990s case study solution, competition between coke and pepsi is a classic corporate battle that started in america at the turn of the centuries, and has expanded into the world of. Heres why the new cola wars are less about coca cola vs. A look at the history and the battle between coca cola and pepsi for the biggest share fo the soft drink market. History of cocacola cocacola was formulated in 1886 by john pemberton pharmacist. Cola wars coke and pepsi monopolized this industry, particularly over 1970s, 80s and 90s which is reflected over the very roes over those years. When it comes to soft drinks, theres no greater rivals than pepsi and coca cola.
Coke and pepsi in the twentyfirst century, harvard. The intense rivalry between carbonated soft drinks csd giants, coca cola and pepsi is the stuff of legends. Pepsi in the twentyfirst century case study solution, cola wars continue. Strategic management at cocacola and pepsi research paper.
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