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Essay Instructions: Cola Wars Continue: Coke and Pepsi in 2010 Harvard Business Case 9-711-462 Do you need the case?

Five Forces in the Cola Industry using Porter's Five Forces Framework
Evaluate the attractiveness of the soda industry by discussing the following for concentrate producers and bottlers, separately,
1) How strong is each of the five forces (Porter's Five Forces Framework)
2) Which of the 5 forces in the most important threat? Explain
3) Based on the five forces, is this an attractive or unattractive industry overall? Explain.
4) Which force do you expect to change the most (weakening or strengthening)

For each point, be specific in discussing supplier power, identify the most important inputs and provide evidence to support your assertion

Essay Instructions: Please complete in 3 pages. Use bullet points as appropriate to
make the points rather than lengthy prose.

Cola Wars Case Questions:

1. Please analyze the soft drink industry using Porter?s Five Forces model
(please refer to pages 69-77 in Grant textbook for Five
Forces model and the Porter article).
a) Be sure to analyze each of the five forces independently and summarize what
you believe is the strength of each force ? weak, moderate or strong. Be sure
that you back up your conclusion with specific supporting evidence from the
case.
b) Using your analysis in 1.a above, please summarize if this is an attractive
(profitable) or unattractive industry (unprofitable) for the Concentrate
Producers (CPs) like Coke and Pepsi? What has made this industry so
attractive or unattractive for CP producers? Be specific.
c) How have Coke and Pepsi created barriers to entry in this industry?
d) Do bottlers have any real power vis-?-vis the concentrate producers?
2. How do Coke and Pepsi keep the cola wars within bounds?
a) Where are Coke and Pepsi really competing? What is the source of their
competitive advantage?
b) Where do Coke and Pepsi chose not to compete? Why?
c) What is it about the industry structure that allows Coke and Pepsi to compete
in this manner?
3. If you could be a bottler for Coke or Pepsi would you rather choose NYC or
Oklahoma City? Why?
4. What structural changes did Coke and Pepsi initiate with Bottlers from the mid-
1980s until the end of the century?
a) What was the rationale for this vertical integration (bottler consolidation) and
subsequent spin-off?
5. What are some of the general environmental trends (outside the industry like
globalization, demographic changes, and cultural changes) that can challenge
the stability of this industry going forward (at time of case writing)?
a. What are the implications for Coke and Pepsi?