Cola Wars Continue: Coke and Pepsi in 2010 Instructions - Read the case study and complete a full analysis by answering the questions below. Be sure to conduct a situational analysis by looking at...

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Cola Wars Continue: Coke and Pepsi in 2010
Instructions - Read the case study and complete a full analysis by answering the questions below. Be sure to conduct a situational analysis by looking at both the external and internal environments when formulating your answers. Also consider other management disciplines and impacts (i.e. Human Resource Management, Marketing, and Finance). Some key considerations: 1. This is not a summary of the Case. Students are expected to apply relevant management principles, critical and analytical thinking when completing the case study 2. Output must be thorough, grammatically accurate and well written using APA format. 3. Case studies will be used for future classes and therefore students are expected to take exceptional care of the document: do not write or spill liquids/food on the document. 4. All Cola Wars Cases must be returned on March 2. Grades will be withheld if cases are not returned. 5. There is 10% penalty for late submission.
Note: All responses will be used as part of the college's assessment process for the masters' program.
Case Questions
1. HR Analysis a) As Coke and Pepsi move forward from this point, are there any important human resource issues that should be considered as part of their corporate and business strategies? Explain answer.
2. Strategy Analysis a) Discuss Porter's 5 forces in this industry with respect to the profitability of bottlers. What are the keys? b) What are the likely challenges to the stability of the industry structure in the coming decades? c) What are the potential drivers of structural change? Consider external factors
3. Financial Analysis a) For companies to be (or continue to be) profitable, they have to use different strategies such as improving existing products, producing new products, entering new markets, and being able to adopt to changes in the market and/or consumer behavior. How did Coke and Pepsi use these strategies? Make sure to provide examples to each strategy.
4. Marketing Analysis a) How do the soft drink companies get away with charging as much as $2-$3 per serving for a product when the "healthy" (tap water) is often free?
Answered Same DayDec 22, 2021

Answer To: Cola Wars Continue: Coke and Pepsi in 2010 Instructions - Read the case study and complete a full...

David answered on Dec 22 2021
128 Votes
1

Answer 1 a:
Over the years the customers’ values and demands have changed. The customers have
become increasingly conscious about their health. Awareness about obesity has significantly
increased. The customers are looking for healthie
r food and drinks items rather than
consuming the soft drinks of Pepsi and Coke. This made it important for the companies to
develop new products that are healthy. The strategy change was in lowering the advertising
expenses of the present products of the company and investing in the new healthy products.
Based on these factors, Coke is transforming its communications by using the term
“sparkling” instead of “carbonated”. On the other hand, Pepsi has introduced healthier
product lines of beverages. Coke is focusing its marketing and advertising efforts to create a
loyal customer base (Marc, 2007). But Coke has to strategically compete with Pepsi in the
new healthy beverages segment in order to retain the existing customers and not lose the
customers to Pepsi. In this extremely competitive and dynamic business environment, the
companies need to ensure that their HR departments contribute to the competitive advantage
of the companies. With globalization, change in customer taste and habits, technological
advancements, it has become important that HR department does not only remain a cost
centre for the company but it needs to shift from a personnel management role to a strategic
role (Bal, 2011).
Answer 2 a:
Porter’s five forces model in this industry with respect to profitability of bottlers is explained
as below.
Threat of Entry
The soft drinks industry in which Pepsi and coke operates is a very profitable
industry. But entry to this industry is difficult due to the existence of the cola giants – Pepsi
2

and Coke. The strongest barrier of entry in this industry is the network of bottlers. This is
because it is a franchisee model in which the bottling companies work. The cola giants have
franchisee agreements with the bottling companies (Marc, 2007). Heavy investment required
is another entry barrier in the industry. The companies in this industry have to invest heavily
in advertisements. It becomes difficult for the new entrants in the market to compete with the
cola giants in terms of their ability to spend on advertising costs with an objective to gain
market share.
Bargaining power of suppliers
The bargaining power of suppliers is...
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