Cola Wars

Team 3 Cola Wars

Briefly describe the fundamental organize of the CSD patience and how it has evolved.

The Carbonated Soda Drink (CSD) patience is considered to be a $74 billion marketplace in the U.S along. The U.S remains the largest supplier of carbonated soft drink in the industry (Graph 1). CocaCola, PepsiCo and Dr. Pepper Snapple Group are the tether dominant players in this highly competitive industry and in total they account for over 80% of the US market share (Graph 2). Among these companies, Coca Cola remains the brand of choice.
The industry has endured different changes along the years. At the beginning, Coca Cola utilize to make believe a Natural Monopoly making it difficult for others to embark the market using lawsuits and other methods. Since then, the market outlook has changed to sprain what it is now a duopoly, where only two players have been adapted to dominate the industry. Currently, the biggest players including Pepsi and Coca Cola own their largest bottling facilities under single-handed subsidiaries. Companies have moved towards a more condensed organizational structure with time. Before, both companies consisted of many independent bottlers, then as payoff became more efficient per facility, production was mainly done in just a few bottlers with strategic territories.




Regarding world-wide expansionist attempts, Coca-Cola has been by far the world leader, yet Pepsi is counter-attacking by attempting to acquire appear markets where Cokes presence is weaker.
CSDs flagship drinks with the traditional recipes have been increasingly getting a negative reputation as awareness of their negative effect on health is organism raised. Accordingly, companies are enduring higher taxes in 29 states as of April 2010 and around 12 more states are considering adopting that same measure. With that in mind, Coke and Pepsi are shifting their effort toward healthier or health conscience drinks such as diet sodas which accounted for 30% of the CSD market in 2009,...If you want to get a total essay, order it on our website: Orderessay



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