Check Grammar for Case Analysis Essay

Answer:

Coke and Pepsi are two bottling companies that are so profitable. to explain the reason for their profitability I would choose an external view as it is more diversified has factors that many influence them directly. The externalenvironment consists of the physical global technological sociocultural economic demographic and political. All those forces are favorable to them, hence they have a big profitability. And that profitability lies on the fact that they have advanced ways of gaining the power of buyers and suppliers. And are also on the front line when it comes to giving a threat to new entrants. the technological segment of both Coke and Pepsi is fastly changing as they want to adjust to the new environments and all that it entails. that is the reason why they have better product innovations their product cycles are also not very long.

Globally and demograpically, the brands and enjoy the fact that they have great bottling netwaks. the two act as forein direct investments as they ensure they do not spend much on transportation of the products. they go aftertheiropportunities and threts tomake sure that they did t fail it whatever they invest. Their oportunism enables them to achieve and strategic competitiveness, and hence they are well positioned regarding maximizationing of profits (Yoffie & Kim, 2011). Coke and Pepsi are in the right place in competion analysis. They gain their benefits well from that they gather infomation frequently to have and understanding of their customer needs.

Coke and Pepsi are also profitable in the fact that they have a great image of brand. They have had a long history in promoting and advertising its products via varius media, the chanels include the internet. television and radio adverts, and making the drinks affordable during a given year of period (Yoffie & Kim, 2011). The advertising has leed the and two brands to gain a amount of brand equity. Also, they have been able to obtain a good number of customers and are also loyal from al over the world.

Question 1 part B : How do you explain the difference in profitability between the concentrate business (Coke and Pepsi) and the bottling industry?

Answer:

Porter Five Force show that the gains of the botling industry and the business are not the same. The concentrate business enjoys high margins, great generation of cash and also high returns. On the other hand, the bottling industry has low returns and also experiences a case of high debt creation. The botlers is weak when it comes to profitably as they donot have good mechanisms that prevent new entrance. Therefore, the concentrate businesses get more profits which creates to a wide gap between them.

Question 2: Coke and Pepsi have created a very profitable industry that has lasted more than a century but there are forces in the external environment that points to harder times in the future. Please pick one segment in the general external environment that you believe will be particularly difficult for the two firms to deal with and explain why you picked that particular segment.

Answer:

If I was to explain theexternal environment factor which would hinder the operation of the Coke and Pepsi in futurwould chose the art of sustaining the historical growth rate. It would be had for them to maintain the historical growth rate as they will has to find better ways in serching new markets to add the consumption of their products. For instanse, Coke will face a hard as it try to focus on the newly international market (Cooper, 2015). They will have to and expansion of their offerings to be able to leverage their distribution infrastructure. such action will be a long term activity as they already failed to buy the Quaker Oats. Pepsi will also has a hard time choosing between many variety of products to find out which has the strongest market. The per capita rate of consumptionome developing economies is big, hence it will be had to maintain the rate of growth.

When people move fromconsuming the carbonated drinks, the cola sales drop. They will develop tactics to re-enter the market using and brands that are also non-carbonated. A failure will set in and people already have a perceptionthe two cola companies major on carbonated drinks exclusively (Cooper, 2015). Therefore, convincing the customer that they has now come up with new non-carbonated drinks will not be an easy task. The rason for pikking this prticula segment in the fact that it and external and it also determines whether a company is has on profits or losses. External factors are the drivers of a company operations it should be consideed first while in competitive environment.

References

Bhasin, K. (2011). “Coke Vs Pepsi: The Amazing Story Behind the Cola Wars.” Business Insider.