The Coca-Cola IndustrySummaryThe soft drink (CSD) industry is very competitive. A few companies dominate this industry, including Coca Cola and Pepsi Cola. This is due to high barriers to entry. Cadbury-Schweppes, producer of products such as 7up and Dr. Pepper, is the third leading company in this sector. Due to the dominance of Coca Cola and Pepsi, Cadbury-Schweppes faces the daunting task of having to fight for market share and survive in this extremely competitive industry. Based on the economic analysis, Cadbury-Schweppes will need to utilize its strengths in categories other than soft drinks to compete in this soft drinks industry.IntroductionDr Pepper Company is the oldest major manufacturer of concentrates and syrups of soft drinks in the United States. Dr Pepper is the company's primary brand. Cadbury Schweppes PLC acquired Dr Pepper/Seven-Up Cos. Inc. in March 1995. The new company will be called Dr Pepper Company, which will focus on the Dr Pepper brand by handling all beverage system sales, which represent 75 percent of the market. its activity, in addition to the associated independent bottlers. The second operating group will be Cadbury Beverages/Seven Up Co., which will serve independent bottlers not offering Dr Pepper. Dr Pepper/Seven Up soft drink brands now hold approximately 16% of the U.S. market. Dr Pepper and Seven-Up are among the top 10 soft drinks, with Dr Pepper being the best non-cola soft drink. Other soft drinks include: A&W Root Beer, Canada Dry, Schweppes, Welch's, Sunkist, Squirt, Crush and Hires (Levy, 1999). According to the soft drink industry report, sales of non-cola drinks have seen strong growth recently. Dr Pepper was number three in the industry. The reason is that the non-cola drinks have a higher than average caffeine level and will be aimed at the 12 to 21 year old market. Clearly, management sees this product as an opportunity to further participate in the growing popularity of cola-free products. The main external threats to Cadbury-Schweppes are competition from Coca-Cola and Pepsi and changing consumer tastes. External opportunities include increasing international sales and developing new products. Cadbury-Schweppes has many internal strengths and weaknesses in its organizational, marketing, operational and financial activities. These characteristics along with economic analysis will be used to provide the answers needed to survive and thrive in the soft drinks industry.Analysis In order to understand the situation of Cadbury-Schweppes in the soft drinks industry, the product, which is soda, must be analyzed.