The “Cola Wars Continue: Coke and Pepsi in the Twenty-First Century” case study focuses on the description of Coca-Cola and Pepsi in the within the soft drinks industry by providing detailed reporting on company accounts. and strategies to increase their market share. Additionally, the case also focuses on Coca-Cola vs. Pepsi products that target similar groups of customers, and how these companies have had and still have excellent reputations and continue to take risks due to their high capital. This Cola Wars Continue case study analysis will primarily focus on the profitability of the industry by carefully examining and analyzing the questions below: Why is the soft drink industry so profitable? Compare the economics of the concentrate industry to the bottling industry: Why are profitability so different? How has competition between Coca-Cola and Pepsi affected industry profits? Can Coke and Pepsi maintain their profits as a result of stagnant demand and the growing popularity of non-carbonated drinks?The soft drinks industry is a very profitable industry and its success is due to the large consumption of soft drinks thanks to which producers of concentrates and bottlers are profitable. Considering US industry consumption statistics, Exhibit 1, it is clear that after deducting beer and wine, soft drinks account for approximately 90% of total liquid consumption, while Coca-Cola and Pepsi accounts for approximately 75% of the soft drink industry. The high consumption of soft drinks is linked to the fact that the soft drink industry sells to consumers through five main channels: grocery stores, convenience stores, vending machines, fountains and others. Of the five channels, the deal describes sales as the most profitable channel for soft drinks...... middle of paper ......e and Pepsi's already established image as a producer of high-end products is essential to discourage other businesses. to enter the soft drink industry. However, as the US market has stabilized, they are expected to continue to invest globally in marketing and advertising to further increase their profits, which in turn will positively influence their well-established brands to further increase sales and the benefits of soft drinks. Marketing campaigns must be adapted to meet the demands of foreign markets, respecting the culture and taste preferences of consumers. Furthermore, in foreign markets, local brands should not be underestimated as they present strong competition to Coca-Cola and Pepsi. Therefore, for the kings of the soft drink industry to expand their reign globally, they need to partner with local soft drink companies and customize their products. soft drinks with local flavors.