Question

Harvard Business School Case: Cola Wars

List 2 relevant facts and data, applicable to the Porter’s 5 Forces Framework, for Coca Cola Number 1 Company (Hint: Concentrate).

Answer 1

When you think of Coca-Cola and its competitors, Pepsi is probably the first name
that comes to mind, and rightfully so. The two companies have been in
competition since the late 19th century.

Their marquee products are very similar in ingredients and taste, though many
consumers swear loyalty to one brand or the other. Both issue their product in a
dizzying array of flavors and variations.

There is one notable difference. Pepsi owns Doritos, Lay's, Cheetos, Tostitos,
Fritos, and Lay's, among other food brands. If everybody swore off soft drinks
tomorrow, Pepsi could still thrive selling salty snacks.

Coca-Cola, on the other hand, has stuck to beverages. But it owns some beverage brands that might surprise some of their customers, like Minute Maid, Powerade, Gold Peak Tea, Dasani, and vitaminwater.

Coke is betting that, if people swear off soft drinks, they've still got to drink something. And it's worth noting that their focus is on healthy alternatives.

Other Competitors

Coca-Cola also competes directly against the Dr. Pepper Snapple Group. In addition to those two name brands, the company also owns a surprising range of beverages including Orangina, RC Cola, Hire's Root Beer, and Nehi.

The upshot on the question of its rivals: As consumer tastes and trends shift, Coca-Cola could be left vulnerable, but the brand has a loyal following and the company has hedged its bets by moving with the beverage trends. The risk in this area is moderate.