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Cola Wars Case Study: Cola Wars Continue: Coke and Pepsi Cola Wars Continue: Coke and Pepsi in 2006 Case Background Case facts traced the historical evolution of the so-called cola wars between Coke and Pepsi since their invention in the late 1800s and up to current times…
In the 21st century, Coke and Pepsi face the new era trying to ascertain if the wars would still continue on the ‘cola’ products and ultimately discern the location of their future battlefield. External scanning of Coca-Cola and Pepsi Cola The case is designed to specifically address the following concerns: a) Why, historically, has the soft-drink industry been so profitable? A discussion of the US soft drink industry revealed that the soft drink industry was actually pioneered with the invention of Coke in 1886 and Pepsi in 1893. Both companies captured the taste of the American public in their ability to quench the thirst of their target markets through the innovatively concocted carbonated drinks. These companies’ product life cycles rationalize the profitability during their historical growth, from the introductory stage, to growth and maturity. During the introductory to growth stages, more and more people who were able to try their CSDs recognized the ability of the product to satisfy consumers’ needs: quenching thirst, building relationships, sharing moments, and socializing, among others. ...
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