Cola Wars Soft Drinks Industry
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Carbonated Soft DrinksNameCourse Instructor InstitutionDateCarbonated Soft Drinks IndustryThe Carbonated Soft Drink Industry is currently undergoing several strategic challenges. The challenges are associated with the emancipation and education of the public both locally and internationally. The sugar and calorie concentration in such drinks is in high amounts to the level that it has been labelled as unhealthy. Mexico, one of the largest global markets for the CSD has the largest number of obese people. Among the foodstuffs labelled as a causing factor are the CSDs (Sharon, 2014). Countries globally have reduced their consumption of the carbonated soft drinks both as individual initiative and governmental. Individually, people are looking for alternatives in less harmful drinks such as milk, coffee, and dilute juices. The government, on the other hand, has increased the tax on these drinks to discourage massive production and or consumption (Yoffie & Keene , 2010). Such constraints have resulted to a big blow to the operational ad functional costs of the CSD industries. The amount of money these industries use in production and advertisement had at one point become more than the amount of money the sales of the drinks earned. Consequently, the Carbonated Soft Drinks industry is forced to look for alternatives in terms of content manufacture and production in order to stay relevant in the rapidly changing market. It is also worth noting that non-carbonated soft drinks along with energy drinks have becoming a prominent threat to the CSDs including to the Cola companies.
The industry has taken several measures to offset its decline. The first step that the CSDs industries need to take is to balance the ingredient contents in their drinks (Sharon, 2014). A good example is seen by the Cola Companies, which introduced smaller drink containers containing less sugar content The Company then educated the public on the importance of regulation of sugar intake. Secondly, in order for the industry to sustain itself, it has to produce alternative drinks that are more preferred by the population. Coca-Cola started producing mineral water called Dasani, which boosted its sales and kept the company relevant. Water being a healthy and basic human requirement sells at a very high speed balancing the sales and production costs (Dinesh, 2010).Use of modern and convenient technology in the production of CSD helps not only in efficiency but also in cost saving. Modern technology, after being purchased does not need as much monetary investment as old technology. The reason being that such machines run almost independently and effectively. The technology, therefore, helps reduce production costs increasing sales profits. The increased Profits keep the industry going. Finally, CSD Industries should invest in partnership deals. There are several other soft drink industries, which are successful in today’s market. By creating partnership deals with them, the CSD companies are able to remain relevant they also find an alternative means of making extra income as the profits are shared among the partners (Yoffie & Keene , 2010).