Preview

Pepsi vs. Coke

Satisfactory Essays
Open Document
Open Document
514 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Pepsi vs. Coke
Business Week
February 5, 2002
Pepsi versus Coke The rivalry of Coca-cola and Pepsi is extremely widespread. In order to remain competitive in a two-person race it is important to analyze the way a company does business. This article gave a competitive analysis between Coke and Pepsi by looking at both the industry structure and at the individual competitors. As it looks at the industry structure, it refers to Porter’s Five-Force model to determine Coke and Pepsi’s strengths and weaknesses. Secondly, at the individual competitor level, it analyzes how Coca-Cola and Pepsi position themselves, in external markets, to sustain a competitive edge. This article looks at the specific actions Coke and Pepsi are taking to set themselves apart from each other and maintain competitive advantage. Coke is in danger of losing its edge. Consumers today are looking into different products than soda. They want green/white teas, energy and fitness drinks, and coca-cola has been slow in answering the call. Mary Minnick, head of marketing and innovation/strategy at Coca-Cola Co., is advocating the push from soda-centric products to those meeting the primal “need states” the consumers have. Pepsi on the other hand has aligned itself with the right people to slowly close the gap on Coke. Steve Refinement, Pepsi's chairman and CEO, said that Pepsi plans to spend more on advertising and promotion, including coupon offers, in order to counter Coke's moves. The main point in this article is that the rivalry between Coca-cola and Pepsi is second to none. The two have been butting heads for awhile now. However, the global market has changed and the demand for carbonated drinks has significantly declined. How Pepsi and Coke answer the call will determine future success. I felt this article was critical to this course because when determining a company’s strength and weakness it is imperative to utilize Porters Five Force Model. This article had some great points that I

You May Also Find These Documents Helpful

  • Better Essays

    Pepsi Co. and Coca Cola, both are very well known multinational companies. They are so famous that they perhaps don’t need any introduction since almost everyone knows basic info about these companies and their widely used products. Both of these companies have been dealing in the production of flavored waters, plain drinking water and soft drinks for decades now and have always been each other’s competitors in almost all the mainstream products they have been producing.…

    • 1930 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Coke vs Pepsi

    • 688 Words
    • 3 Pages

    Coke and Pepsi have always been rival beverages for decades. I can remember my teens when most households would divide into two when it came to choosing their choice of drink, especially when going for grocery shopping. Even the advert aired by both brands shows a lot of rivalries between them. When one makes a new product, the other would do everything possible to make something similar or better than the former. Making people, both old and young believe their product is the best. When comparing the two beverages, there’s a major thing we normally notice from their commercials, while Coca-Cola Company uses families and animal in most of their commercial ads relating to peoples society, Pepsi Company uses different super stars and celebrities to sell their product worldwide. However, as coke uses their ethos in targeting both the old and young generation, Pepsi target mostly today’s youth in their adverts.…

    • 688 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Pepsi vs Coke

    • 1511 Words
    • 7 Pages

    For more than a century, Coca Cola and PepsiCo have been the major competitors within the soft drink market. By employing various advertising tactics, strategies such as blind taste tests, and reward initiatives for the consumer, they have grown to become oligopolistic rivals. In the soft-drink business, “The Coca-Cola Company” and “PepsiCo, Incorporated” hold most of the market shares in virtually every region of the world. They have brands that the consumers want, whether it be soft-drink brands or in PepsioCo’s case, snacks. With only one soft-drink market, the two competitors have no choice but to increase sales by stealing the other competitor’s clients. This led to the term, the “cola wars” which was first used to describe the “mutually-targeted” marketing campaigns in the 1980s and 1990s. A revival of the Cola wars is occurring now as PepsiCo remakes a well-known comparative commercial and resurfaces old tactics used in 1979. A closer look at their advertising styles and market shares will provide us with an idea of how the future will be for these two competitors.…

    • 1511 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    Pepsi vs. Coca Cola

    • 1877 Words
    • 8 Pages

    * The NWC to total assets has increased by 70.680% because the current assets increased and the current liabilities decreased.…

    • 1877 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    Coke vs. Pepsi

    • 1386 Words
    • 6 Pages

    Wall Street Journal (2010). Who Does it Better. Retrieved on June 10, 2011 from Website:…

    • 1386 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Cola Wars Continue

    • 1342 Words
    • 6 Pages

    When it comes to soft drinks there are two top soft drink brands that come to mind, Coke and Pepsi. These two brands were invented in the 1800s and produced tasteful drinks that could be acquired at the nearest drinking fountain. The first drink produced by both companies, Coca-Cola by Coke and Pepsi-Cola by Pepsi, fought neck and neck from their early existence. Coke and Pepsi being competitors of each other from that day on went on to produce numerous of drinks that mirrored each other in some way over the next 100 years. In this case study that I extensively read I became more familiarized with both brands and more knowledgeable of their backgrounds and competiveness amongst each other. The primary focus is how the brands were conducting business in the 1990s. The following two questions have been posed and I will answer them with supporting information from the reading itself:…

    • 1342 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Cola Wars

    • 3319 Words
    • 14 Pages

    This report is based upon the information from the Harvard business case: “Cola Wars Continue: Coke and Pepsi in the Twenty-First Century”. Both Coca Cola Company and PepsiCo are the largest players in the Carbonated Soft Drinks (CSD) industry. The purpose of this report is to gain insight into the possible strategies that can be applied, in order to expand the overall throat share in the future. History revealed that a highly competitive strategy that was utilized in the past by both companies resulted in a ‘Nash Equilibrium’. Because of this, the report is described from the perspective of both Coca-Cola and Pepsi. The scope of this report covers not only on the increase of overall market share, but also finding new opportunities in unrevealed markets. The analysis is also based upon the eight key concept model. In addition the PEST-analysis and the five forces model of Porter is also utilized to gain insight into the ‘macro-environment’ and ‘meso-environment’…

    • 3319 Words
    • 14 Pages
    Powerful Essays
  • Satisfactory Essays

    1. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca- Cola India. What specific aspects of the political environment have played key roles? Could these effects have been anticipated prior to market entry? If not, could developments in the political arena have been handled better by each company?…

    • 545 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    coca vs pepsi

    • 1824 Words
    • 8 Pages

    The case is about the rivalry between two of the biggest companies in the world, Coca Cola and Pepsi. It is a battle which started in the early 1990s and which still characterizes the soft drink industry; but, as a former CEO of Pepsi said, it is a “battle without blood”: Coca Cola could not exist without Pepsi and the other way round. They mutually force each other to adapt their strategy to customers’ new needs, to apply competitive prices and to face the new challenges in a more innovative way, in order to keep their market share.…

    • 1824 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Coke vs Pepsi

    • 733 Words
    • 3 Pages

    Chapter 9 in Competition Demystified: Uncivil Cola Wars: Coke and Pepsi Confront the Prisoner’s Dilemma…

    • 733 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    entrant Pepsi made a huge impact on sales and profits of Coke. But, today Cola-Wars between Coke…

    • 2566 Words
    • 11 Pages
    Satisfactory Essays
  • Powerful Essays

    cola war 2010

    • 1549 Words
    • 7 Pages

    There was a “war" between Coca-Cola and PepsiCo, not only have they been rivals for ages but they have always followed each other’s moves. The warfare must be perceived as a continuing battle without blood. Without Pepsi, Coke would have a tough time being an original and lively competitor. Below are the factors that lead to problems.…

    • 1549 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    The Coca cola has a non-contributory pension plan covering substantially all non- union employees and one non-contributory pension plan covering certain union employees. Costs of the plans are charged to current operations and consist of several components of net periodic pension cost based on various actuarial assumptions regarding future experience of the plans. In addition, certain other union employees are covered by plans provided by their respective union organizations and the Company expenses amounts as paid in accordance with union agreements. The Company recognizes the cost of postretirement benefits, which consist principally of medical benefits, during employees’ periods of active service. The Coca-Cola Co. is adopting a cash-balance pension plan for new and current employees. Under the cash-balance plan design, employees will receive annual age-heighted credits equal to a percentage of pay. Those credits will start at 3 percent of pay and increase with age. Employees’ cash-balance plan accounts also will be credited with interest.…

    • 2403 Words
    • 10 Pages
    Better Essays
  • Satisfactory Essays

    Compare the economics of concentrated business to that of bottling business? Why is the profitability so different?…

    • 376 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Pepsi and Coke

    • 541 Words
    • 3 Pages

    Coke and Pepsi are both two big companies in the world which are known by cola. Pepsi is the biggest competitor of coke. The Coca-Cola Company is the world’s largest manufacturer, distributor and beverage company.(No author, 2009-6-26) Pepsi company is also a transnational corporation with long history. Each of them has big market in the world. However, a comparison of Pepsi and Coke reveals several similarities but a great number of differences.…

    • 541 Words
    • 3 Pages
    Good Essays