Cola Wars

Essay by EssaySwap ContributorUniversity, Master's February 2008

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Cola Wars In the Cola Wars case it appears that Coke is practicing a monopolistic approach to business. By trying to continuously buying the bottling plants either out from under Pepsi or by gaining a greater market share they keep hindering Pepsis ability to get a strong hold in any market.

In my opinion Pepsi should start an international campaign to try get a better foot hold in the international arena. Since they are having such a hard time getting bottlers, they should use their current bottlers to start exporting to countries around them. This way they will not have to have bottlers in every country they want a presence in. Also the cost of shipping may be less than the cost of owning a bottler.

Another option is franchising. Like Coke they could sell only the main ingredient (Pepsi syrup) to the owner. If the owner has a stake in the business then they are more likely to ensure that the business will succeed.

By franchising, the ?host company? has very little money upfront.

I think that had Pepsi taken care of its original bottler they would not have had this problem in the first place. It states in the case that Oswaldo Cisneros came to Pepsi with a proposition that would allow Cisneros to expand his business to other countries. Had Pepsi taken Cisneros seriously and not put him off for as long as they did, they would not have been put in this situation. I completely agree with what Cisneros did to ensure that his company continued to grow.