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Wordcount: 529
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Coke/Pepsi Case
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Strategic Issues and Key Problems
Turning the twenty-first century, the world cola giants, Coke and Pepsi, are facing the stagnant growth of cola sales in the United States (see Exhibit 1) while they have invested heavily to preempt the international market where various obstacles existed. Under such a business environment, both Coke and Pepsi try to extend their potential to turn the significant challenges of today to the opportunities of tomorrow for the continuation of their growth.
Why Is This Industry Dominated by Two Firms.
According to my analysis, firstly, they enjoy economies of scale by forming beverage mega-group including franchise bottlers and retailers through binding agreements. In cola industry, the
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