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In: Operations Management

Summarize the history of the Cola Wars, spanning 100 years. Who has been winning the war?...

Summarize the history of the Cola Wars, spanning 100 years. Who has been winning the war? Who has been losing?

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Expert Solution

The war of business between the two giants of the US market-based business of Coca Cola and PepsiCo is termed as the great cola wars. Pepsi and Coca Cola offered similar products with different tastes which were liked by the people and are termed as the cola wars. Coca Cola developed the brand as the flag bearer of Santa coming from the poles during Christmas while Pepsi developed an image of drink Pepsi and get offers and gifts.

The market crash has been such in these years where the brand has lost market share to each other in the market and the war was based on the US shares. In the 1970s and post, that era the war became global as the markets opened up for the brands to explore. The Cola once brought out its new set of product which failed in the market to bring its old set of classic Coca Cola back to the market like issues to bolster sales and regain markets lost from time to time.

In the war of Cola for the last 100 years, the brand of Pepsi and Cola are fighting to gain each other’s market share. The brands have both diversified and made the needed contents in the system which is well made for the terms with the new innovation of sentiments and advertisements. This had been a healthy competition across the globe which also made the brands like RC Cola grow during the giant's wars to be another substantial but new brand in making in among the giants of the day.

Thus in the overall context, no one has been gaining or losing but the war has made a healthy choice of competition and the third-largest brand was made in this period. Hence the choices of competition are made well based on the market targets that the brands had based on consumer needs and thus the war was prolonged. This never led the business to lose in these years of such trouble to deal with the losing war of the business in the period for both brands but it was a healthy context of the competitive war in an open market economy.


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