Case analysis

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University of the Cumberlands *

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Finance

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May 31, 2024

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docx

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RUNNING HEAD: CASE ANALYSIS 1 Case Analysis Kruti Shah University of the Cumberlands Date: June 23, 2019
CASE ANALYSIS 2 What is the primary problem in the case?  Secondary problems? What are the ramifications of these problems in the long run?  Short run?  Include quantitative and qualitative analysis in your response. Competition and incompetency in health beverages are the two main problems with Coca-Cola. There is a need to introduce beverages that suits difference target audiences. Well in case of competition considering the top most competitor ‘Pepsi’. These are the two manor companies in the beverage industry. Let’s analyze both the companies in general. These two have been rivals for over a century as per Ruback (1995). These companies have their brand recognition globally but whereas Coca-Cola has been the largest manufacturer and distributor of these non-alcoholic beverages all over the world. This company has been around in more than 150 countries having products like Crush, Fanta, coke, Dasani, minute maid etc. Whereas Pepsi has its hand on the snack industry as well. It sells multiple snacks like Quaker Oats and Frito-Lays along with the beverages. Coca-Cola’s share prices have been through ups and downs in the early 2000s of being an average of $45 - $50 in 2003 where as the price was $100 in 1990s. (Copeland & Koller, 2000). This drop was mainly because of the change in the customer preferences for carbonated drinks and other beverages. This indeed is one of the most important key factors which drives this industry. Pepsi intron has always been into the market with different and changing products. It always experiments with new products hence becoming a diverse company having 4 different businesses under the same name. (Rosenbaum, 2009). Pepsi have had their own way of reducing the production of very sugary drinks, and healthy snacks depending on the market demand. Hence in 2004 their sales had been twice as that of Coca-Cola: which was a huge setback for
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