1. Examine the economics of the soft drink industry and compare the concentrate business and the bottling business: why is the profitability so different?

2. What is (are) the key factor(s) for success in the soft drink industry?

3. How has the industry structure changed over the time period of the case? Ask yourself (a) what factors are critical elements in the industrial environment, and (b) what role does the competition between Coca Cola and Pepsi Cola plays in re-structuring the industry and where is the impact of the competitive forces the greatest (on which players; i.e. companies)?