Verified Document

Coke And Pepsi Coca Cola Term Paper

In this case, customers are not captive, they are free to exercise their desires, needs, and expectations and to choose the product that they feel most connected with. Usually, old customers will be loyal to either Coca Cola or Pepsi, they will not switch sides, on the one hand. On the other hand, is the new and potential customers that the two companies must fight over. Customers have great power over the two companies, over their strategies, and over the direction they will orient towards. Both companies' strategies should be determined by customers. The first thing to be considered for having a successful strategy is understanding the customer. Pepsi has been successful at this, while Coca Cola is still trying to figure out what their customers and potential customers really want. Regarding the bargaining power of suppliers, Pepsi seems to be one step ahead of Coca Cola in this field too, as Pepsi is promoting supplier diversity programs, that should help the company gain competitive advantage and to be less dependent of suppliers. Therefore, for Pepsi, "an integral part of our mission is a commitment to purchase from a supplier base representative of our employees, consumers, retail customers and communities" (PepsiCo, 2007).

There is little threat of new entrants on the market. The two companies are active worldwide, they are two giant corporations, and there is very little possibility...

The level that these two companies have reached allows then to be comfortable about dealing with new entrants.
Substitute products however present a certain degree of danger for the two companies. There are many programs and campaigns nowadays that are trying to encourage customers not to buy products like those issued by Coke and Pepsi. These aggressive campaigns might determine the two companies' customers to orient the budget destined for buying Coke and Pepsi products to healthier products.

As for intensity of competitive rivalry, the direct and strong competition between Coke and Pepsi is well-known worldwide. Regarding competition, the two companies seem to be handling it in the same way. Each of these two companies represents the main direct competitor. The companies do not seem to pay much attention to other smaller competitors.

Reference List

Foust, Dean (2006). Queen of Pop. BusinessWeek online. Retrieved August 29, 2007 at http://www.businessweek.com/magazine/content/06_32/b3996401.htm.

Brady, Diane (2004). Pepsi's Thousand and One Noshes. BusinessWeek online. Retrieved August 29, 2007 at http://www.businessweek.com/magazine/content/04_24/b3887061_mz017.htm.

Supplier Diversity (2007). PepsiCo Inc. Retrieved August 29, 2007 at http://www.pepsico.com/PEP_Diversity/SupplierDiversity/.

Sources used in this document:
Reference List

Foust, Dean (2006). Queen of Pop. BusinessWeek online. Retrieved August 29, 2007 at http://www.businessweek.com/magazine/content/06_32/b3996401.htm.

Brady, Diane (2004). Pepsi's Thousand and One Noshes. BusinessWeek online. Retrieved August 29, 2007 at http://www.businessweek.com/magazine/content/04_24/b3887061_mz017.htm.

Supplier Diversity (2007). PepsiCo Inc. Retrieved August 29, 2007 at http://www.pepsico.com/PEP_Diversity/SupplierDiversity/.
Cite this Document:
Copy Bibliography Citation

Related Documents

Coke/Pepsi Coca-Cola and Pepsi Are
Words: 752 Length: 3 Document Type: Research Proposal

The annual reports were used to derive ratios. The report will analyze each ratio in turn, comparing the respective performance of each company. Once this analysis is complete, the report will draw conclusions regarding the two companies and their potential role in our firm's investment portfolio. Body There are three main types of ratios -- liquidity, solvency and profitability. In terms of liquidity, Pepsi exhibits superior performance. Pepsi has the better

Coca Cola Marketing Strategies in
Words: 3378 Length: 11 Document Type: Term Paper

For nutritionists, who continue to issue dire warnings about the obesity epidemic, a diet soda surge is good news, although the soda industry discounts the link. The shift to diet is being felt across the industry, including the many small regional soda companies. Coca-Cola operates in a highly saturated industry, as there are many, many competitors for cola products. Some companies manufacture highly competitive goods, such as PepsiCo, which

Coca-Cola Low Cost Differentiation Preemptive
Words: 796 Length: 3 Document Type: Research Paper

This provides tremendous opportunity to build market share without significant increases in infrastructure. The downside of these markets is that they tend to be less efficient, because fixed costs are higher in relation to revenues. The company can win in such markets, however, if it uses its globally powerful brand to gain a stronger presence in underserved markets, thereby pre-empting rival firms from entering these markets. With Coca-Cola establishing

Coca-Cola Ad Campaigns in Morocco
Words: 8264 Length: 30 Document Type: Research Proposal

, relevant to considerations of the impact of locally adapted TV advertisements on sales revenues of Coca-Cola Company in Morocco during the Holy month of Ramadan. Chapter III: Methodology During Chapter III of the study, the researcher relates the methodology, which includes a survey, utilized to investigate the impact of locally adapted TV advertisements on sales revenues of Coca-Cola Company in Morocco during the Holy month of Ramadan. Chapter IV: Analysis During Chapter IV

Coke Pepsi, . For Reference, I 57
Words: 2036 Length: 7 Document Type: Essay

Coke Pepsi, . For reference, I 57 years male. Written Assignment: Analyzing Advertisements Essay - Rough Draft Analyzing Advertisements Overview: Logical argumentation studied accepted forms argument. The Soda Wars: Analyzing Messages in Advertising The battle between two soda giants, Coca-Cola and Pepsi, has been raging for many years. Both products are hugely successful, with world-wide brands and a wide array of products beyond their titular sodas. Similarly, their advertising campaigns and

Comparing the Fiscal Status of Both Coca-Cola and Pepsi
Words: 1832 Length: 6 Document Type: Research Paper

Coca Cola & Pepsi Coca-Cola and Pepsi are long-time rivals in the soft drink industry. In terms of their primary markets, the two have been engaged in an intense battle for market leadership for decades. While this makes them natural comparables as investments go, they are significantly different in a number of other ways and this makes the question of which is the better investment a more challenging debate. Pepsi has

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now