Industry Analysis Csd
Mohan Shiv
Section #1
Boston College
Carroll School of Management
MM 720 Management Practice I
STRATEGIC ANALYSIS
Professor MCCLEELLAN
Case: Cola wars Continue: Coke and Pepsi in the 21st Century
September
INDUSTRY ANALYSIS OF THE CARBONATED SOFT DRINKS INDUSTRY
Description of the Industry
The industry of Carbonated Soft Drinks (CSD) is highly concentrated. The three major companies, Coca Cola, PepsiCo, and Cadbury Schweppes accounted in 1998 for more than 90% of market share by case volume –Exhibit 1-.
Generally, there are 4 participants in the market, involved in the process of production and distribution, namely, concentrate producers, bottlers, retail channels, and suppliers. Porter's 5 forces analysis reveals the following characteristics of the CSD industry:
1- A fierce competition exists among very few players: The industry is an oligopoly, or even a duopoly, given the intense rivalry between Coke and Pepsi, with a combined market share exceeding ¾......
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