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'The Cola Wars Continues: Coke and Pepsi in the 21st Century': Co...

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'The Cola Wars Continues: Coke and Pepsi in the 21st Century': Competitive Strategy Case Study

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  • April 6, 2007
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Table of contentsExecutive Summary…………………………………………………...……………….3Identify Corporate Mission……………………………………………………………4Industry Structure……………………………………………………………………5SWOT Analysis………………………………………………..…………………10Core Competencies and Competitive Advantage……………………...……………12Strategy Recommendations……………………………………………..……………14Potential Fallout…………………………………………………………………..16References………………………………………………………………..…………19Executive SummaryThe Cola Wars between the two industry giants Coca-Cola Company and PepsiCo continues today after over 100 years of rivalry. The competitive strategies of Coca-Cola and PepsiCo have been examined, and even though they are different, both seemed to have been successful to become the first and second companies in the soft drink industry. Coca-Cola with effective advertising, and Pepsi with effective young generation market target, have developed their marketing strategies and began to modify their pricing, bottling and brand strategies. Both companies entered international markets, however Coca-Cola were more effective and lead the markets in most countries. In the 21st centuries, with increasing demand in healthier products both companies expanded their brand portfolios and diversified to find new sources of revenues.

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...