Case Analysis - Cola Wars Continue: Coke and Pepsi in 2010

582 Words Jun 3rd, 2014 3 Pages
Case Analysis – Cola Wars Continue: Coke and Pepsi in 2010

Coke and Pepsi are two leading companies in the soft drink industry. They contend with each other during decades. The Cola Wars are a campaign of mutually-targeted television advertisements and marketing campaigns since the 1980s between soft drink manufacturers The Coca-Cola Company and PepsiCo.
Historically, the soft drink industry has been so profitable. Porter’s Five- Forces Model of industry competition can define and analyze an industry in terms of five main factors. In this industry, competition is quite cruel between rivalries since Coca-Cola and Pepsi are already powerful leaders in the industry. It is basically a duopoly situation in soft drink field. The two
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Bottling does more of the end product jobs such as producing and distributing, making the bottling business deal with more direct materials, machinery and tangible business. While the concentrate business is basically dealing with advertising and marketing and intangible business, thus, concentrate business is less risky and more profitable.
The soft drink industry’s profit is mostly the profit of Coke and Pepsi. The two companies are so influential not only in the soft drink industry, but the whole beverage industry. The competition between two leaders should be good for the industry. Since there is already a duopoly situation, Coke and Pepsi compete for the market for years while neither of them appears to be weaker in the industry. They are relatively tied in the competition, and the competition did not affect the industry very much.
Coke and Pepsi to sustain their profits in the wake of flattening demand and the growing popularity of non-CSDs by developing their association with the customer to gain their loyalty and brand equity. People are more likely to pursue a healthy diet thus the sales of soda decrease harshly. Both coke and Pepsi have introduced non-CSDs to balance out the market sales, and change their concept as more than refreshing drink to avoid the negative thoughts about CSDs. And also expand their production line and make it more global would also help maintain the profit. The two leading companies of the soft
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