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Cola Wars of the 21st Century

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

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https://brainmass.com/economics/environment/cola-wars-21st-century-594534

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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.

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See Also This Related BrainMass Solution

Coke and Pepsi Wars

A relevant article: http://wehner.tamu.edu/mgmt.www/v-buenger/466/Coke_and_Pepsi.pdf

1. Discuss Coke and Pepsi's current situation.

2. Discuss how Coke has been a leader in the cola wars and Pepsi a follower.

3. Discuss how Pepsi has been a leader in the cola wars and Pepsi a follower.

4. Discuss the direction of the cola industry in the 21st century.

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