Explore BrainMass

Cola Wars of the 21st Century

Prepare a case study of the "War of the Continuing Colas: Coke and Pepsi in the Twenty-First Century" with references included.

© BrainMass Inc. brainmass.com July 23, 2018, 11:44 am ad1c9bdddf

Solution Preview

Step 1
The Coke and Pepsi war continues in the Twentieth Century. The soft drinks industry is controlled by two giants Coca-Cola and PepsiCo. Both these companies have ensured that the industry remains profitable both for themselves, that is the concentrate makers and the bottlers. The soft drinks industries in which these two companies have a market share of 90% earn a high profit. The reason is a very high market share. The products and brand have global recognition. The unique position of the companies has also enabled them to shift some of the costs to the bottlers. The strategy of both the companies is differentiation though brand recognition.

Step 2
In the twentieth century there is a change in the manner in which the competition between Coca-Cola and PepsiCo will be fought. On one hand the cola sales in the US have stagnated. However, there are opportunities in several foreign countries. The emerging markets have a high potential for increasing the sales of cola. On the other hand the both Coca-Cola and PepsiCo have launched non-colas, non-carbs, and even convenience foods. These offer excellent diversification opportunities for both these companies (b). The cola battles will now be fought over brand extensions, convenience foods, and health foods. In addition, as ...

Solution Summary

Almost 800 words give an outline of the cola wars in the twenty first century. The sources used are also included in the solution.