The five forces that drive competition were analysed to define the industry structure of the carbonate beverage industry. The rivalry among existing firms, threat of new entrants and substitute products, and bargaining power of buyers and suppliers showed that Coca-Cola and Pespi have little risks in this industry and shows positive economic benefits for the two leading brands. Therefore this is a comfortable industry for the two cola giants to be in.
The corporate missions, core competencies and competitive advantage, competitive strategies and a SWOT analysis were identified for both the Coca-Cola Company and PepsiCo. Recommendations to their future strategies, with potential fallouts, are given to Coca-Cola and PepsiCo. Both companies should constantly perform market research to know exactly what consumers want, continue innovation, creativity and adaptability to cope with the rapid changes in consumer demands. Finally, both companies should continue to diversify in the products and businesses, and entry the fast growing healthier drink and food markets to become the new leader in this industry.
I. Identify the corporate missionThe most recognisable cola brands worldwide are without any doubt Coca-Cola and Pepsi, both with an American origin and with over a century of history. Coca-Cola and Pepsi are the leaders of the cola industry, with a similar product, however they have quite different competitive strategies in terms of structure, marketing, production and delivery.
The corporate mission of the Coca-Cola Company is:"To refresh the World… in body, mind and spirit.
To Inspire Moments of Optimism… through our brands and our actions.
To Create Value and Make a Difference… everywhere in the world."Coca-Cola also has a vision for sustainable growth by:"Maximizing return to shareowners while being mindful of our overall responsibilities.
Being a great place to work where people are inspired to be the best they can be.
Bringing to the world a portfolio of beverages that anticipate and satisfy peoples' desires and needs.
Nurturing a winning network of partners and building mutual loyalty.
Being a responsible global citizen that makes a difference ."If we were to ask a Coca-Cola company's CEO what their company is about they would reply something like "we [Coca-Cola] are the leading brand in carbonated soft drinks worldwide, by always satisfying our customers' desires and needs in a sustainable way, while maximising our shareholders' profits".
The corporate mission of the PepsiCo is:"To be the world's premier consumer product company focused on convenient foods and beverages.
To produce healthy financial rewards to investors as we provide opportunities for growth...