Cola Wars Continue – Case Analysis Questions (100 points)
Questions：
1. In class we talked about firm profits and two perspectives of how to explain them – an internal resource based view and a more external view focused on the industry the firm competes in. Two questions related to firm profits:
a. If you were asked to explain why Coke and Pepsi are so profitable, which perspective would you take and how would you explain their elevated profitability?
b. How do you explain the difference in profitability between the concentrate business (Coke and Pepsi) and the bottling industry?
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.
- 3 Pages, Double Spaced. The size of the type should be 12 points. Page number on every page of the text and the text should be left-justified.
- Please read – Cola Case Material and course PPT
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