Examines the industry structure and competitive strategy of Coca-Cola and Pepsi over 100 years of rivalry. New challenges in 2006 include strengthening Select carbonated soft drink (CSD) sales and finding new revenue streams. Both firms also began their bottling, pricing, and brand strategies change. They looked for new international markets to accelerate growth and expand their portfolios of alternate beverages like tea, juice, sports drinks, energy drinks and bottled water. Coca-Cola and Pepsi … Read more »

Examines the industry structure and competitive strategy of Coca-Cola and Pepsi over 100 years of rivalry. New challenges in 2006 include strengthening Select carbonated soft drink (CSD) sales and finding new revenue streams. Both firms also began their bottling, pricing, and brand strategies change. They looked for new international markets to accelerate growth and expand their portfolios of alternate beverages like tea, juice, sports drinks, energy drinks and bottled water. Coca-Cola and Pepsi-Cola had for the “throat share” of the beverage market worldwide competed. The most intense battles of the cola wars were fought over the $ 66000000000 CSD industry in the United States, where the average American consumes 52 gallons of CSD per year. In a “carefully performed competition” from 1975 to 1995 both Coke and Pepsi had achieved average annual growth of around 10%, as both U.S. and worldwide CSD consumption consistently increased. This cozy situation was threatened in the late 1990s, however, when U.S. CSD consumption declined slightly before what appeared to be a plateau. Considers whether Coke and Pepsi era of sustainable growth and profitability comes to an end, or whether this apparent slowdown was just another blip in the course of a century of enviable performance.
A rewritten version of an earlier case.
«Hide

from
David B. Yoffie,
Michael Slind
Source: HBS Premier Case Collection
29 pages.
Release Date: 09 May, 2006. Prod #: 706 447 PDF-ENG
Cola Wars Continue: Coke and Pepsi in 2006 HBR case solution