The Cola Wars case raises the key question of what Coke and Pepsi must do to sustain their spectacular historical successes. The structure of the case touches on a wide variety of key topics in the external environment including competitive dynamics,] [vertical integration strategy, globalization, and general market pressures.
The key questions/issues to address in your analysis would be: - Why historically has the soft drink industry been so profitable? - Compare and Contrast the economics of the concentrate business to that of bottling business. Why is the profitability so different? - How has the fierce competition between Coke and Pepsi affected the industry's profits and their own operational strategies? - How can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-CSDs?