The Cola Wars Continue – Case-1

Document Type
1 pages
Word Count
366 words
Indian school of busines
Course Code
MBA 2021
Case: The Cola Wars Continue: Coke vs. Pepsi in the 21st Century
Question 1 How does a five-forces analysis explain industry profitability?
Power of Supplier Number of suppliers are large, and distribution are through many channels
like Supermarket, Fountain Outlets, Vending machines, mass merchandize, convenience store,
drug store and other outlets. As stated, the competition for fountain sales was intense. These
circumstances give the supplier more bargaining power.
Power of Buyer CDS is worth $60 Billion industry in USA, with and average consumption of
53 Gallons of CDS per year by an American. This show the Industry is very huge. Since this
Industry is very competitive the switching the supplier is very easy, giving more power to
2) Why has the soft drink industry been so profitable?
3) Can Coke and Pepsi sustain their profits in future? Why or why not?

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