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Case
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Reference no. 9-711-462
Prize winner
Published by:
Harvard Business Publishing (2010)
Version:
26 May 2011
Length:
22 pages
Data source:
Published sources
Abstract:
Examines the industry structure and competitive strategy of Coca-Cola and Pepsi over 100 years of rivalry. The most intense battles of the cola wars were fought over the USD74 billion CSD industry in the United States, where the average American consumes 46 gallons of CSD per year. In a 'carefully waged competitive struggle,' from 1975 to the mid-1990s, both Coke and Pepsi had achieved average annual growth of around 10%, as both US and worldwide CSD consumption consistently rose. However, starting in the late 1990s, US CSD consumption started to decline and new non-sparkling beverages become popular, threatening to alter the companies' brand, bottling, and pricing strategies. The case considers what has to be done for Coke and Pepsi to ensure sustainable growth and profitability. A rewritten version of an earlier case.
Settings:
United States, 1886-2010, Gross revenue USD74 billion
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