CHAPTER ONE 1.0 INTRODUCTION 1.1 Background to the Problem Global competition, a key aspect in business boardrooms, has forced organizations to compete as demand chains as opposed to individual entities in order to outdo their rivals by improving the physical distribution and service quality of their products through provision of high customer service levels while minimizing the logistical related costs (Friday et al 2011). According to Deloitte Touche Tohmatsu review on soft drinks (2005), the beverage industry is extremely competitive, with private labels greatly the environment. The beverage market includes several different products that can be grouped into two main categories: alcoholic (beer, wine, spirits) and non-alcoholic (carbonated soft drinks, juice, water, sports drinks, etc.) Within the soft drink sector, carbonated soft drinks (CSD) continue to dominate the market, encompassing traditional beverages as well as sugar-free and caffeine-free drinks, which have soared in popularity. Simultaneously, manufacturers are focusing on innovation in order to maintain growth. The global carbonated soft drinks industry is a tight oligopoly with Pepsi and its chief competitor Coca Cola, comprising 70% of the total market (Angelkov et al, 2003). Three leading companies have prominent presence in the soft drink industry; the Coca-Cola Company, PepsiCo, and Cadbury Schweppes. According to the Cola annual report (2004), it has the most soft drink sales with $22 billion (Deichert et al 2006).
CHAPTER ONE 1.0 INTRODUCTION 1.1 Background to the Problem Global competition, a key aspect in business boardrooms, has forced organizations to compete as demand chains as opposed to individual entities in order to outdo their rivals by improving the physical distribution and service quality of their products through provision of high customer service levels while minimizing the logistical related costs (Friday et al 2011). According to Deloitte Touche Tohmatsu review on soft drinks (2005), the beverage industry is extremely competitive, with private labels greatly the environment. The beverage market includes several different products that can be grouped into two main categories: alcoholic (beer, wine, spirits) and non-alcoholic (carbonated soft drinks, juice, water, sports drinks, etc.) Within the soft drink sector, carbonated soft drinks (CSD) continue to dominate the market, encompassing traditional beverages as well as sugar-free and caffeine-free drinks, which have soared in popularity. Simultaneously, manufacturers are focusing on innovation in order to maintain growth. The global carbonated soft drinks industry is a tight oligopoly with Pepsi and its chief competitor Coca Cola, comprising 70% of the total market (Angelkov et al, 2003). Three leading companies have prominent presence in the soft drink industry; the Coca-Cola Company, PepsiCo, and Cadbury Schweppes. According to the annual report (2004), it has the most soft drink sales with $22 billion (Deichert et al 2006). Cola
DISSERTATION_SUBMITTED_Masawwe_RTM.docx