ENVIRONMENTAL SCAN

Environmental Scan

Coca Cola & Pepsi

1. How each company creates value and sustain competitive advantage through business strategy

Coca-Cola

Coca Cola creates value for its clients over its competitors by offering a product that the customer values in a special way. Coca Cola offers a product at lower cost as being the market leader, and this strategy makes it differ from its competitors. Coca Cola competition position depends on obtaining a sustainable competitive advantage and defending the superiority. If this does not occur, the customer will create value, which will be able to exploit the rivalry among competitors like Pepsi to get low prices.

Coca-Cola stands as a leading brand in the soft drinks segment supported by high product differentiation, which is based on its brand image and has been listed several times as one of the most valued brand all over the world. This has helped maintain their market share without significantly affecting its price level, even against the entry of new low-priced brands like Big Cola or own-brand chains like Carrefour. In this way, Coca Cola sustain competitive advantage.

Pepsi

The main competitive advantage of Pepsi is the better-quality services, exceptional performances, innovative rivalry strategies and most importantly a high level of trust in the target market. The dominant aim of Pepsi is to boost the value of the shareholders' venture all the way through incorporated working, devoting and business actions. The unique strategy of Pepsi is to focus on its resources in order to grow the internal and external business. Pepsi's objective is to make acquisitions carefully and desire to use these acquisitions as a major competitive tool against Coca Cola.

Pepsi's approach is only one of its kinds and frequently adjusted in order to deal with the strengths, weaknesses opportunities and threats of the international market. In this way, it makes ...