Essay on Coke and Pepsi in the Twenty-First Century

2398 Words Apr 19th, 2015 10 Pages
Running head: Cola Wars 1

Coke and Pepsi in the Twenty-First Century
University of Redlands
Deborah Bedgood-Ealy
Professor Richard Doyle
March 12, 2015 Coca-Cola and Pepsi function in the soft drink industry as dominating players and have remained market leaders for a long time. The key competencies of Coke and Pepsi range from the product, supply chain and distribution, marketing and customer loyalty. Each of them has developed operating procedure. The supply chain forms a major component or a competency that helps these companies form a competitive advantage for themselves (Wheelen & Hunger Page Ref: 332-335). Training of human resources also forms an important element as it helps strengthen the human
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The supply chain in each of these markets is also to be considered. It is also important that they consider the competition in each of the markets. There are several local soft drink companies in each of the markets. Moreover, there exist many substitutes which claim to be healthier than aerated drinks. All of these lead to a great impact on the sale of a soft of a soft drink company. In case of Pepsi, Coke happens to be one of its major competitors and this has resulted in them having to be extremely involved and active in case of their promotional and marketing strategies as well as activities. All of this results in formation of competitive strategies becoming a crucial element in the soft drink industry (Page Ref: 18-20). Pepsi might find some amount of untapped value hidden in the complimentary products. Yet, this may or may not be as significant as the main products of Pepsi and requires focusing on their main product lines in the food and beverage markets. Some companies like Pepsi should try and sustain the red ocean market if it is extremely profitable and leads to competition being manageable. In red oceans, industry boundaries are clearly defined and accepted, and the competitive rules of the game are known. In case of a firm that cannot sustain price war and other competitive strategies adopted by the competitors in an attempt

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