Cola Wars

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The Cola Wars Zacharias Elinder 40094 Vanessa Meyer 40091 Sofie Karlsson 40082 Kim Norlander 40088

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Cola Wars Presentation slides

Transcript of Cola Wars

  • 1. The Cola Wars
    Zacharias Elinder 40094
    Vanessa Meyer 40091
    SofieKarlsson 40082
    Kim Norlander 40088

2. The Pepsi/Coke supply chain
Supplier
Supplier
Supplier
Supplier
Pepsi
Coca Cola
CCE
IB
Fountains
PBG
IB
Fountains
Supplier
End-customers
3. Profitability/Attractiveness of Concentrate Industry
5 Forces Analysis
1. Suppliers: Low power, low cost, commodity ingredients, many suppliers
2. Substitutes: Mature market, new beverage trends
3. Buyers: Bottlers (low barging power) & fountains Low power.
4. New Entrants: Unequal access to bottlers (soft drink inter-competition act), economics of scale.
5. Competitors: Duopoly (Pepsi & Coke dominate the market)
4. Is the concentrate industry profitable?
Yes, it is still profitable!
Why?
-Low capital costs

  • Low distribution and production cost

5. Duopoly, few actors share the profit 6. Huge growth potential