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Strategic Management
, Sixth Edition
Charles W. L. Hill, University of Washington
Gareth R. Jones, Texas A&M University
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Case Discussion Questions
Discussion Questions for Case 24--A Hundred-Year War: Coke vs. Pepsi, 1890s-1990s
- The soft drink industry evolved with a franchised bottler system. For most of the industry's history the concentrate producers nurtured and preserved this system. Why?
- During the 1980s both Coke and Pepsi began to acquire bottlers. Why?
- Why did Coca-Cola dominate the soft drink industry by the end of World War II?
- How was Pepsi able to come back from near bankruptcy and gain market share
at the expense of Coke from the 1950s to 1975?
- During the 1950s, 1960s, and early 1970s, being a concentrate producer yielded
high returns. Why was this the case?
- How did the national launch of the Pepsi challenge in 1977 change the nature of competition in the industry?
- In retrospect, did the Pepsi challenge and the competition that followed
it benefit or harm Pepsi and Coke?
- During the 1990s Coca-Cola gained market share back from Pepsi, and was significantly more profitable. Why?
- Why do you think Coca-Cola holds such a dominant position over Pepsi in the
international marketplace?
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