Coca Cola Wars
- Submitted by: tommyg
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- Category: Other
- Date Submitted: 01/29/2010 01:39 AM
- Pages: 6
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Mature market with geographic expansion and growth opportunities in selected markets (e.g., China, India, ...)
Minimum regulated market.
Value Capture – CSD Industry
Barriers to Entry – High barriers to entry at the top of the value chain due to a limited number of concentrate producers but increased competition and a reduction in the barriers to entry as we move down the value chain
Competition – significant competition for market share across the value chain
Supplier power – The suppliers in this case would exert limited power due to the significant buyer power exerted by the concentrate producers on behalf of the bottlers.
Buyer_ power_ – Power concentrated at the top of the value chain as concentrate producers ‘s exerts significant influence right down the value chain e.g., negotiate for key raw materials for bottlers.
Possibility of generating significant margins at the top and the bottom of the value chain but increasing squeeze on margins in the middle of the value chain
*Position – *Cola
Cola is a well established productwith a leading position in the Carbonated Drinks market. The Cola companies have exceptionally strong brand names within the industry and continue to diversify their operations in to other segment of the drinks market.
Capabilities of Cola
*Q: Evaluate Cola’s (*)* strategy of buying bottlers, making them stronger, and then selling them again. Would you change this strategy*?* Do you agree with it?
Cola’s strategy for vertically full integration, as opposed to the tapered integration it had pursued previously, along its value chain by acquiring bottlers was to create additional value downwards in the value chain. The key thinking behind this strategy can be analyzed by looking at the impact this had on the existing value chain within the Carbonated Soft Drinks (CSD) industry as the overall buying/supplier power Cola increased significantly down the value chain as a result of this acquisition. In...
Minimum regulated market.
Value Capture – CSD Industry
Barriers to Entry – High barriers to entry at the top of the value chain due to a limited number of concentrate producers but increased competition and a reduction in the barriers to entry as we move down the value chain
Competition – significant competition for market share across the value chain
Supplier power – The suppliers in this case would exert limited power due to the significant buyer power exerted by the concentrate producers on behalf of the bottlers.
Buyer_ power_ – Power concentrated at the top of the value chain as concentrate producers ‘s exerts significant influence right down the value chain e.g., negotiate for key raw materials for bottlers.
Possibility of generating significant margins at the top and the bottom of the value chain but increasing squeeze on margins in the middle of the value chain
*Position – *Cola
Cola is a well established productwith a leading position in the Carbonated Drinks market. The Cola companies have exceptionally strong brand names within the industry and continue to diversify their operations in to other segment of the drinks market.
Capabilities of Cola
*Q: Evaluate Cola’s (*)* strategy of buying bottlers, making them stronger, and then selling them again. Would you change this strategy*?* Do you agree with it?
Cola’s strategy for vertically full integration, as opposed to the tapered integration it had pursued previously, along its value chain by acquiring bottlers was to create additional value downwards in the value chain. The key thinking behind this strategy can be analyzed by looking at the impact this had on the existing value chain within the Carbonated Soft Drinks (CSD) industry as the overall buying/supplier power Cola increased significantly down the value chain as a result of this acquisition. In...