sse cola wars group4
Post on 19-Oct-2014
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Media Mangement Assignment (KTH&SSE)TRANSCRIPT
Cola wars
Coca & Pepsi
Group 4
Zhang Yuanyuan : [email protected]
Zhong Wei :[email protected]
Chi Mingli :[email protected]
Guo Xing :[email protected]
Introduction The 5 forces analysis Today’ challenges
Agenda
For over a century, Coca-Cola and Pepsi-Cola vied for “throat share” of the world’s beverage market. From 1975 to 1995, Coke and Pepsi achieved average annual growth of around 10%. However, in the late 1990s, CSD consumption dropped and worldwide shipments slowed for both Coke and Pepsi.
As the cola wars continued into the 21st century, the cola giants faced a large number of challenges but biggest of them were to modify their bottling, pricing, and brand strategies.
Introduction
The Concentrate business
the industry incumbent/rivals The soft drink produc
ers
Power of suppliers
Low
Power of buyers
High (低)
Barriers of entry
High
Threats of substitutes
High( 中,在升 )
Coca Cola and Pepsi Cola hold the most market share.
They compete with each other and the competition was fierce.
Rivalry Condition
Substitutes
Existence of Substitute Products Coffee, Juice, Tea, Beer, Milk and so forth
Substitute Products become more popular which considered as a threat for CSD companies.
Coke and Pepsi are established brands. Good relationship with their retail channels Defending their positions through discounting or
other tactics.
New Entrants
Bargaining power is low due to -Many sources on the open market
-Creation power of suppliers is low
-Lots of major suppliers
Power of supplier
Bargaining power is high for fountain supermarkets and mass merchandising
Supermarkets are the main distribution channel
Power of Buyers
The soft drink industry is profitable due to the five forces analysis.
Conclusion
The Bottler business
Power of suppliers
Low 高
the industry incumbent/rivals The soft drink produc
ers
Barriers of entry
Low 高
Power of buyers
High
Threats of substitutes
High 低
Compared with the concentrate business, the barrier of entry is low. Consequently, the profitability s not high
The bottling business profitability
As Coca and Pepsi’s fierce competition, the soft drink will profitability decline due to the promotion and discount competition.
Nowadays, there exist so many substitute products, the Coca Cola and Pepsi Cola’s market share and profitability might be affected.
Today’s challenges
Cola Wars Continue: Coke and Pepsi in the Twenty-First Century: DAVID B. YOFFIE
Cola Wars Continue: Coke & Pepsi in the 21th century: http://www.slideshare.net/adhirock/cola-wars-case
www.coca-cola.com www.pepsiamericans.com The Five Competitive Forces that Shape Competitive Strategy, Porter, ME
References