Cola Wars Continue: Coke And Pepsi In 2006 Case Study Analysis

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Cola Wars Continue: Coke And Pepsi In 2006 Case Solution

Cola Wars Continue: Coke And Pepsi In 2006 Case Study Solution is a popular name of a New york city based, world's leading company in the food and beverage market. Case Study Analysis is a leading brand name in practical treats, foods and drinks with its presence in about 200 countries. Major brands of the business include; Pepsi-Cola, Frito-Lay, Tropicana, Quaker and Gatorade. The core competitive benefit of the company is its ability to market the product at everywhere locations. Furthermore, the business is doing efforts to make product development as its new source of competitive advantage.

The report consists of a deep analysis of numerous elements of the social responsibilities of significant companies in the food and drink industry in general, and company in specific. The report also offers an evaluation of the level of sustainability and CSR in the Cola Wars Continue: Coke And Pepsi In 2006 Case Study Help's organisation technique along with the decision of how Case Study Solution develops worth for its consumers.

Concerns Identification

The giant food and drink company was going through a criticism over its responsibility towards different social and ecological concerns including; weight problems, cardiovascular disease, ecological devastation and so on. These criticisms lead, to rethink about the corporate technique of Cola Wars Continue: Coke And Pepsi In 2006 Case Study Solution. The David B Yoffie has actually recognized that the total society, the lifestyle of individuals and individuals at whole have been altered now. In this circumstance with increasing patterns towards much healthier items and the increasing environmental concerns, Case Study Solution must alter its direction towards much healthier items. business had actually taken certain essential steps regarding the ecological impacts of its products, however, these steps are not enough to end up the criticism over the company's duty towards social and eco-friendly problems. Therefore, the is required to take specific strategic actions to alter the market position of its specific well-known brand names and present Cola Wars Continue: Coke And Pepsi In 2006 Case Study Help as a business producing healthy items in the market. In this regard, Case Study Analysis and other food and drink companies must utilize their power to shift the customer taste towards healthier products to get rid of the restrictions in the growth of food market.

Crucial Analysis

For the few decades, consumer food patterns have actually been changed significantly. The shift from making use of natural food to produced food has actually highly affected the health of the consumers. Despite of the discovery of modern-day health methods, the total health of people in few decades have been extremely impacted. Presently about 1 billion of individuals In United States are obese and at least 300 million of them have weight problems. Kids likewise dealing with the issue of weight problems. The ratios of obesity in 1980s are quite different from the current ratios. Despite of discovery of health methods and modern-day ways to control weight problems and other illness, the ratio of weight problems has actually been doubled form the level of 1980. All of the information associated with the health problems with the incorporation of made food in the market explain the prevalence of the health problems related to food system. These issues are indirectly the outcome of numerous practices of the food and drink business for producing worth for their consumers.

Worth Creation at Cola Wars Continue: Coke And Pepsi In 2006 Case Study Analysis

Cola Wars Continue: Coke And Pepsi In 2006 Case Study Solution being a giant business in the food and beverage market, offers high value to its customers by different methods. Case Study Help has a competitive advantage in supplying its items far and wide worldwide. The business is presented in about 200 countries with a big number of famous global brands.

The business develops value for its customers by ways of supplying big number of yummy food products including salt, fat and sugar, which are the ingredients that are straight linked with the psychological core of the customer's brain. The Cola Wars Continue: Coke And Pepsi In 2006 Case Study Analysis together with other giant food and drinks companies produce value for its customers by controling these active ingredients in its products. Case Study Help together with other huge business is interested in discovering ways to increase the consumer worth from its products through making use of the vulnerability.

Together with it, the business also develops worth by means of incorporating the healthy point in its items. The company has actually done specific efforts in order to offer healthy items and reduce the share of Cola Wars Continue: Coke And Pepsi In 2006 Case Study Solution in total ecological devastation. Case Study Solution has taken particular steps related to the sustainability of individuals and environment including the 2009 announcement of the ambitious goals and dedications associated with Case Study Help items, marketplace and the neighborhood.

All of these ways have actually succeeded at developing worth for the business customers. These ways have also lead to the increased ecological concerns and the criticism over the company's function in increasing health and ecological difficulties. The incorporation of ingredients like salt, fat and sugar in the business products for developing customer value deals with high amount of criticism. These components are the main reason for particular fatal diseases in human including obesity, diabetes, cardiovascular disease and so on. Increasing health associated concerns have actually raised the criticism for Cola Wars Continue: Coke And Pepsi In 2006 Case Study Help.

Useful Role of Major Food and Beverage Companies in Dealing With Social and Ecological Expenses Connected With the Industry

Undoubtedly, major food and beverage business consisting of business, etc. can play a positive role in attending to social and eco-friendly expenses connected with the industry. The eco-friendly expenses related to food and drink industry consist of the ecological destruction due to the influx of nitrogen which has resulted in the lowered water drinking patterns, river contamination, and increased emission of greenhouse gases from soil and so on. All these factors leads to environmental destruction which could be a huge hazard to the presence of humankind in future.

Significant cause of these environmental modifications is mass usage of nitrogen abundant fertilizers and the active ingredients by the food and drink business. Food and drink companies ought to play a positive role in addressing these concerns to eliminate their development restrictions related to the criticism from the environmental communities.

The business must avoid use of nitrogen fertilizers and must browse out the items of those farmers that do not utilize fertilizers for their crop. The business might use sustainable energy sources at their production plant to compensate the greenhouse gas emissions from the usage of nitrogen-rich products.

In addition to the eco-friendly costs there are specific social expenses related to the food and beverage industry which must be resolved by the huge food and drink business to accomplish the market growth and to prevent the criticism from the environmental neighborhoods. Social expenses connected with the industry includes the increasing health issues connected to weight problems, cardiovascular disease, diabetes etc. The huge companies could play a positive function in attending to these concerns.

The business could move towards healthier products by reducing the amount of poisonous substances in their processed foods i.e. dioxin, which might lead to lethal human diseases. In addition to it, the companies should utilize more healthy components rather than derivatives of Corn and Soy to increase number of calories from their products. The business could also do efforts to shift consumer tastes towards healthy products as they have actually controlled the customer taste for couple of decades. In this method the giant food and drink business might play an useful role in attending to social and eco-friendly costs connected to the industry.

Examination of Sustainability at Cola Wars Continue: Coke And Pepsi In 2006 Case Study Analysis

There was a prospective shift in the business method and objectives at Case Study Solution. The brand-new CEO was concentrated on purchasing much healthier items for accomplishing sustainable development for the company along with providing healthier future for individuals and the planet both. Under the new vision, the slogan of the company was likewise changed from the "fun for you" to "better for you".

Human Sustainability

company got Quaker Oats producing TrueNorth nut snacks and SoBe, and Naked Juice producing soy beverages and natural beverages to introduce different much healthier items in its portfolio. Despite of being thought about a Case Solution's healthy brand name, the products of Quaker Oats consisted of several active ingredients which were hazardous to health.

Together with the inculcation of healthy brands in its portfolio through acquisitions, Cola Wars Continue: Coke And Pepsi In 2006 Case Study Analysis has actually taken particular sustainability actions for its market locations. Among significant examples in this regard is the Business's marketing strategy associated to schools. The business markets only low calories and nutritious beverages choices in schools.

Another action taken by Case Study Solution towards human sustainability is the shift of its focus towards research study and advancement for presenting brand-new and healthy items in its portfolio. The company has increased its research and advancement budget and has actually presented an army of health scientists to create specific healthy products.

Environmental Sustainability

In this regard, the business devoted to decrease its product packaging by millions of tones to prevent high quantity of wastages. The company has committed to minimize greenhouse gas emissions along with the accomplishment of efficiency in the energy use.

On the basis of above analysis, it could be figured out that the company has taken several actions towards human and ecological sustainability. These actions are still not enough to achieve the desired industrial growth and to lower the criticism over the social obligation of Case Study Help.

Alternatives

Certain long term tactical options might be obtained for the company on the basis of above analysis. These alternatives can be examined on the basis of the reality that how the option would enable the company to attain its objective of possible development and reduce the criticism over the company. Moreover, the options could be assessed on the basis of the time frame that would be taken by an alternative to be executed together with the expense and risks related to the option

Alternative-1: intro of a New Product line Connected to Healthy Foods and Beverages

The primary step that Cola Wars Continue: Coke And Pepsi In 2006 Case Study Solution might take is to introduce a brand-new line of product related to healthy food and beverages. Although, the business has already introduced particular heath associated brand names, but, the variety of these brands in its portfolio is not possible to reduce the criticism and attain potential development. For that reason, the company must present a wide variety of much healthier items by using its substantial research study and advancement expenditures. The advantages and disadvantages connected to the introduction of a healthy product line in the portfolio are offered below:

Pros:

• Ability to target large number of consumers i.e. health mindful consumers.
• Reduction of the criticism of ecological worried societies and neighborhood advancement organizations.
• Satisfaction of the social duty by settlement of the harmful items with healthy items.
• Could be carried out within few years i.e. 3 to 5 years.

Cons:

• Danger of failure of the new items in the market i.e. consumers may not like the taste and may decline the healthier products due to the addictive nature of harmful items.
• The harmful items in the item portfolio might make the incorporation of healthy items stop working to lower criticism.
• Substantial expense of research study and advancement required to develop brand-new healthy items.

Alternative-2: High level Acquisition of Health related Business

Another alternative option to attain the possible development and reduce the criticism is to acquire the health related business at a high level. Financial investment in these type of business would allow Cola Wars Continue: Coke And Pepsi In 2006 Case Study Analysis to present a big variety of much healthier items within a brief time duration without any need of significant research and advancement expenses. The advantages and disadvantages connected to alternative 3 are provided listed below:

Pros:

• Conserving of substantial quantity of research study and development expenses for new item advancement.
• Incorporation of brand-new items within 2 years.
• Ability to target large number of customers i.e. health mindful consumers.
• Reduction of the criticism of ecological concerned societies and community advancement organizations.
• Satisfaction of the social duty by compensation of the harmful items with healthy products.

Cons:

• The acquisition might not show to change the image of Cola Wars Continue: Coke And Pepsi In 2006 Case Study Help as in case of Quake Oats.
• Requirement of big amount of capital.
• Threat of failure of the new products in the market i.e. customers may not like the taste and may not accept the healthier products due to the addictive nature of hazardous items.
• The hazardous items in the product portfolio may make the incorporation of healthy items fail to minimize criticism.

Aletrnative-3: Replacement of Hazardous Products with Healthy Products in the Portfolio

Another alternative option for Cola Wars Continue: Coke And Pepsi In 2006 Case Study Help is to replace all of its harmful items with much healthier items. This could be a substantial shift in business method and the business model at business. The replacement of harmful items with much healthier items would completely change the market position of the company and would need a large number of necessary steps to be taken. The advantages and disadvantages associated with alternative 3 are given below:

Pros:

• Change of market position of Cola Wars Continue: Coke And Pepsi In 2006 Case Study Help
• Capability to target large number of consumers i.e. health conscious consumers.
• End of all of the criticism of environmental concerned societies and neighborhood advancement companies.
• Satisfaction of the social responsibility

Cons:

• Danger of failure of the brand-new items in the market i.e. consumers may not like the taste and may decline the healthier products due to the addictive nature of hazardous products.
• Big cost of research study and development required to construct brand-new healthy items.
• Staff member might resist over the modification in the business design and business method.
• Number of years needed for the application.
• Shift of focus from the core competencies.

Recommendations

With the deep analysis of the business's CSR, concerns dealt with by the company and the existing industry scenario, Case Study Help is advised to think about alternative 2 of high level of acquisition of health related business. As the acquisitions would make it possible for the business to save of huge quantity of research study and advancement expenses for new product development. Along with it, acquisitions would enable incorporation of brand-new items within two years along with the ability to target big number of consumers.

This Cola Wars Continue: Coke And Pepsi In 2006 case study is writen by : David B Yoffie

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