COLA WARS

Cola wars



Cola Wars

Introduction

The rivalry between the two old soft drinks companies known as Coca Cola and Pepsi has a long history and at present as well are having strict competition with each other. The two soft drinks are one of the world's leading soft drinks brands and have a huge market share in many parts of the world. Though, Coca Cola has a slight edge as compare to the Pepsi Brand and have a much higher market share as compare to Pepsi in many parts of the world. Though, the marketing aspect of both these companies is very strong. In this case, all the major aspects of the Marketing need to be highlighted that covers both brands known as Pepsi and Coca Cola. Therefore, all the issues and aspects related to Cola Wars will be discussed in detail.

Porter's five Forces in Industry

The importance of the Porter's Five Forces is quite important in respect to the profitability of the bottlers. All the key components related to the five forces of the Porter's Model would be discussed in relation to the Pepsi and Coca Cola Company. The Five forces of Porter's are widely used by most of the organizations in order to highlight all the marketing aspects implemented by them. The identification of the some useful marketing elements related to the company assists in the assessment of the data. In this way, the strategies are then prepared for the future. The description of the Porter's Five Forces in the Industry will be discussed in next page.

Competitive Rivalry (Low)

The market between the Pepsi and Coca Cola can be considered a duopoly because of the nature of the competition. Though, these two brands are considered major competitors' but they often collaborate each other as both of them wants to retain their strong position in the industry.

Coca Cola has a much higher market share as compare to Pepsi in the soft drinks' industry. Coca Cola has a 2/3rd share of the top three soft drinks in the market.

Coca Cola has targeted and successfully achieved international growth to a very large extent.

Coca Cola and Pepsi does not have many competitors in the industry. This has made it possible for the two brands to remain dominant in the industry.

2) Bargaining Power of suppliers (Low)

The inputs for the Coca Cola's products were the main contents used in the production of the drink. The primary products are Sucrose, Fructose and Bottling. The other product is Sugar that is easily purchased from many sources in the open market and the company also has an alternative option to buy another product known as Corn Syrup. The option of the purchase of the raw materials is quite abundant for the Company. This is not a difficult option for the Company as they have range of choices in this regard.

The bargaining power with suppliers of Pepsi and Coca Cola is not all an issue for ...