Ivey Publishing
SodaStream Takes on Coke and Pepsi
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11 pages (8 pages of text)
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Case (Library)
SodaStream International Limited is an Israel-based company that pioneered the home carbonation market. It sells soda makers that enable the consumer to prepare at home sparkling water or a variety of flavoured carbonated beverages. After its initial public offering in 2010, its chief executive officer sought to aggressively grow the company and set a $1 billion revenue target (from 2012 revenues of $436.32 million) by principally focusing on the U.S. market, the largest in the world for non-carbonated beverages. In addition to going up against global beverage behemoths, Coca-Cola Company and PepsiCo — whose advertising budgets alone are five to eight times SodaStream’s revenues — SodaStream faces new competitors in Green Mountain Coffee Roasters and Primo Water Corporation, who pose a direct challenge to its ambitious goal.
Learning Objective:
The case can be used in an MBA strategy course to discuss the topics of business models and strategic positioning. The following are its specific teaching objectives:

  • To consider the implications of a company’s business model in light of shifting industry boundaries.
  • To examine the role of a disruptor and identify the challenges it faces in a mature industry.
  • To strike a balance between consolidating a company’s core market (i.e., Western Europe) and investing in overseas growth opportunities in a large but challenging market (i.e., the United States).
  • To examine the role of environmentalism as a differentiator.
General Management/Strategy,  Marketing,  International
Accommodation & Food Services
Isreal; United States, Large, 2013
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