Industry Analysis Csd Essay
Carroll School of Management
MM 720 Management Practice I
Case: Cola wars Continue: Coke and Pepsi in the 21st Century
INDUSTRY ANALYSIS OF THE CARBONATED SOFT DRINKS INDUSTRY
Description of the Industry
The industry of Carbonated Soft Drinks (CSD) is highly concentrated. The three major companies, Coca Cola, PepsiCo, and Cadbury Schweppes accounted in 1998 for more than 90% of market share by case volume Exhibit 1-.
Generally, there are 4 participants in the market, involved in the process of production and distribution, namely, concentrate producers, bottlers, retail channels, and suppliers. Porter's 5 forces analysis reveals …show more content…
3- Globalization is an important shift in the strategy of Pepsi and Coke, as the domestic market becomes more mature. So, Pepsi and Coke have to target international markets and run the risk of operating abroad (political risk, threat of national brand names, ).
Exhibit 1: Growth of Market share by Case Volume 1990 1995 1998 2000E
Coca Cola Company 41.1% 42.3% 44.5% 44.1%
PepsiCo, Inc 32.4% 30.9% 31.4% 31.4%
Cadbury Schweppes (*) 3.2% 15.1% 14.3% 14.7%
Others 23.3% 11.7% 9.8% 9.8%