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Essay Details:
Essay text:
They struggle for over a century to conquer the number one position in the market, competing fiercely in last few years, following each one's strategic decisions.
Nevertheless, something seems to threaten the profitability of these two giants. The increasing share of non-carbonated soft drinks seems to be able to decrease the high margins that once ruled in the CSD's industry. In this sense, what will the future of Coke and Pepsi be? How will Concentrate Producers (CP's) and bottlers face this new challenge?
In this assignment it's our intent to discuss the economics behind this situation. We will start by analysing the profitability within the soft drink industry; the differences between CP's and bottlers' profitability and, in the end we will explain the main consequences of competition between this two giants over the industries profitability...
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