Cola Wars Continue: Coke and Pepsi in 2006, Spanish Version Harvard Case Solution & Analysis

This article understands the industry structure and competitive strategy of Coca-Cola and Pepsi over 100 years of competition. Some of the new challenges in 2006 include fostering flagging carbonated soft drink (CSD) sales and finding new revenue streams. Both companies also started to alter their bottling, pricing, and brand strategies. They looked to emerging international markets to fuel growth and expand their portfolios of alternate beverages like juice, tea, sports drinks, energy drinks, and bottled water. Coca-Cola and Pepsi Cola had vied for the "throat share" of the world's drink marketplace. The most intense conflicts of the cola wars were fought over the $66 billion CSD business in America, where the typical American consumes 52 gallons of CSD per year.

In a "carefully waged competitive battle," from 1975 to 1995, both Coke and Pepsi had reached average annual increase of around 10%, as both U.S. and worldwide CSD consumption consistently increased. This cost situation was endangered in the late 1990s, nevertheless, when the U.S. CSD consumption decreased marginally before reaching what appeared to be a tableland. Considers whether this clear slow down was just another blip in the course of a century of enviable operation or whether Coke's and Pepsi's age of sustained growth and profitability was coming to a close.

PUBLICATION DATE: May 09, 2006 PRODUCT #: 707S06-HCB-SPA

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Cola Wars Continue: Coke and Pepsi in 2006, Spanish Version

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