Competitors Analysis - Soft Drink Industry

5000 Words Feb 4th, 2007 20 Pages
Executive Summary – Competition
In 2005, the global carbonated soft drink (CSD) market generated revenues of over $147 billion, all of which comes from three global powerhouse companies occupying 90% of the market. Coca-Cola, Pepsi, and Cadbury Schweppes, are one, two and three, respectively, in the very competitive CSD industry. Over past decades, the CSD market has been honored with record growth, showing consumption rates that have more than doubled over the last 25 years. Americans are consuming twice as many beverages as they were 25 years ago; however, while carbonated soft drinks continue to remain the most popular beverage, consumer preferences are changing to include other types of beverages, such as waters, juices, and other
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Coca-Cola is the number one carbonated beverage company in the world, selling almost 1.3 billion servings everyday. This is due, in part, to the strength of the management team behind the scenes. Coca-cola has a goal oriented work environment and a democratic management style. Their main focus, other than product innovation, is to focus on marketing and advertising of their leading products. The real story of The Coca-Cola Company lies in what they are doing to build a sustainable-growth business for tomorrow.
PepsiCo management has an average age of 49.5. The top executive positions have been all been occupied within the last 5 years. While the top-level management is relatively new, they have all been with various divisions of PepsiCo for several years prior to assuming their current roles. Under Pepsi current management, they have developed a strategy that they hope will help gain the competitive edge they need to steal market share from Coke – it's called Pepsi's Sustainable Advantage.
Pepsi's Sustainable Advantage – Source: www.pepsi.com
Three major sustainable advantages give PepsiCo a competitive edge as we operate in the global marketplace:
1. Big, muscular brands;
2. Proven ability to innovate and create differentiated products; and
3. Powerful go-to-market systems.
The management team of Cadbury Schweppes is to deliver superior shareowner performance for profitability and to significantly increase the
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