Cola case wars- Case study

Read and carefully consider the Cola Wars case, then address the case discussion topics.  Support your analysis with facts and data from the case narrative and the case tables and exhibits, as well as with principles and examples from your course texts and other readings (will be attached).  NOTE: Do *NOT* do outside research for this case analysis.

  1. Historically why have the concentrate producers been so profitable?   Be explicit about your reasons.
  2. Discuss whether Coke and Pepsi will sustain their profits in the wake of flattening demand and the growing popularity of non-CSD’s.  What changes would you suggest to their strategies?
  3. Compare the economics of the concentrate business to that of the bottling business. Why is the profitability so different?
  4. How has the competition between Coke and Pepsi affected the industry profits?  Who has won the “cola wars”?  Who has lost?  Why doesn’t the “war” escalate out of control?

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