Case Study in Strategic Management Example | Topics and Well Written Essays - 750 words

In Strategic Management - Case carry ExampleIn the beverage industry, both Coke and Pepsi contract been able to achieve their annual increase in the revenue of around 10% due to the rise in the consumption steadily, year by and by year. In the industry, the profits that each of the companies, Coke and Pepsi depend on each other to come up with the profits as there is stiff competitions between them (Coke, 35). The consumptions of additional more gallons than the 52 per day also brought major profits in the beverage industry despite the challenges that the industries went through. There was also the coming up with several more alternative beverage that led to the consumption of more and more profit.Based on 2009 comparative cost for United States concentrate feeding bottler and concentrate producers had a cumulative income of thirty two percentage while bottlers recorder a net income of eight per cent. Cost of Goods Sold is 0.22 dollars per concentrate case and 2.67 dollars per bottles case. In the concentrate producers there was blending of raw materials ingredients, were packed in plastic canisters and the n were shipped through the containers to the bottler (Coke, 89). The difference in the profit comes with the difference in the making of the concentration with the concentrates making soupy sweetener while the regular bottlers added sugar or high fructose corn syrup. Some of the probative expenses include promotions, bottler support, promotions, and record research. The bottlers bought concentrate and added carbonated water and sweeteners, canned the final product and then delivered to stores. The concentrates have the plants costing 25 million dollars to the required 50 million to build. The low investment in the take has led to the low profit in the concentrates as compared to the other bottlers.Pepsi and Coke are the leading competitors in the CSD market. Coke was established in 1886