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Cola Wars Continue: Coke and Pepsi in 2010
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Transcript
Challenge
Situation
Cola Wars Continue:
Coke and Pepsi in 2010
- Coca-Cola and Pepsi-Cola begin in late 19th Century
- Consumption of CSD is dropping
David Fleury
- Become leaders in Carbonated Soft Drink (CSD) oligopoly (Later bottling industry)
- Nearly all competitive advantage in CSD industry is temporary
- 10% annual growth 1975-1990
Northeastern University
Strategy in Action
Summer II 2017
- 2009: Combined 72% of US CSD Industry
Result
Case Questions
- Why is profitability different in concentrate vs. bottling?
- 1960: Coke launches Fanta, Sprite, Tab
- 1960: Pepsi lauches Teem, Mountain Dew, Diet Pepsi
- How has competition affected industry profits?
- 1970: Pepsi sells unsweetened concentrate
- 1978: Coke sells unsweetened concentrate
- Why doesn't the war escalate out of control?
- 1960-1980: Diet-Pepsi is widely successful
- 1982: Coke introduces "Diet Coke"
- How can Coke and Pepsi sustain profits with fizzing demand?
- 1986: Coca-Cola enterprises (CCE), Pepsi Bottling Group (PBG)
- 2009: Pepsi buys back PBG, Coke buys back CCE
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