How do coke and pepsi compete-what is most important why


Just skimming the articles and coming up with a one or two sentence answer to each question is not considered "prepared." Please put some time into having complete answers for all questions.

Read (7)-(11). Note that Coke vs Pepsi is a five forces case, so focus on a comprehensive five forces analysis. It is only necessary to read the first 12 pages, skipping the various tables and appendices at the end. Questions:

1. Why has this industry generally been profitable (for example, prior to 1999, when the trend towards healthier drinks began)? That is, why have the joint profits of CPs and bottlers been high? Conduct a five forces analysis considering the bottlers and CPs as a single unit (where possible)! Thus, for example, suppliers are not bottlers but rather firms that provide inputs used by either bottlers or CPs, such as cans or caramel coloring.

2. How do Coke and Pepsi compete-what is most important? Why are Coke and Pepsi proliferating brands and products?

3. What are the pros and cons of using exclusive territories? Why the trend towards effective vertical integration?

Questions for Positioning:

1. For Wal-Mart and its rivals:

a. What's going on in groceries? Why was Wal-Mart a natural entrant?

b. What takeaways do you have about Wal-Mart and those who compete with it? What principles can you apply to other markets from these examples?

c. What future threats does Wal-Mart face and what do you recommend? What is Target doing about these threats and what do you think about it?

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