Coke has been leading the competition from 1998-2002 in terms of higher market capitalization‚ gross margin and net income. However‚ Pepsi was leading the fight in terms of growth in revenue and net income. However‚ Pepsi’s stock performed 45% better than Coke’s stock. Overall‚ Pepsi was a smaller company but it was growing faster than Coke. Coke had a strong foundation‚ however‚ their revenue during this period increased due to summer months artificially increasing the demand. Pepsi‚ on the other
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Coke and Pepsi in the Twenty-First Century: Threat of Entry:low 1. Economies of scale - High production volume but merit not clear (1st paragraph on page 2) 2. Product differentiation - Brand identification (high advertising expense‚ Exhibit 2) 3. Capital requirements - CPs: little capital investment (1st paragraph on page 2) - Bottlers: capital intensive (2nd paragraph on page 3) 4. Cost disadvantages independent of size - No 5. Access to distribution channels - Food stores (35%): intense
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Mohamed Saada. Coke vs. Pepsi War Overview: In 1985 Coke has introduced a new Coke product replacing its old Coke Formula that has been around for almost 100 years. The reaction has been outrageous by the consumers who resisted the new Coke forcing the company to go back in its decision and sell the two products together. My opinion is that the mistake was partially being a wrong strategic call and partially a mistake in interpreting the market research date. On the strategic call‚ Coke was losing
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Coke and Pepsi Coke and Pepsi are both two big companies in the world which are known by cola. Pepsi is the biggest competitor of coke. The Coca-Cola Company is the world’s largest manufacturer‚ distributor and beverage company.(No author‚ 2009-6-26) Pepsi company is also a transnational corporation with long history. Each of them has big market in the world. However‚ a comparison of Pepsi and Coke reveals several similarities but a great number of differences. Coke and Pepsi are similar
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company? Ans: The primary barrier to Pepsi and Coca-Cola’s entry into the Indian market was its political / legal environment as a result of its history. Despite the liberalization of the Indian economy in 1991 and introduction of the New Industrial Policy to eliminate barriers‚ such as bureaucracy and regulation to foreign direct investment‚ India still had a strong history of protectionism‚ dating back most recently to its economic policies following the Gulf War. India’s past promotion of “indigenous
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Pepsi is a manufacturer or use manufacturers‚ market and sell a variety of salty‚ sweet and grain-based snacks‚ carbonated and non-carbonated beverages‚ and foods through their North American and international divisions. B) Coca-Cola has the dominant position in beverage sales. C) Coca-Cola 2006 $29‚963‚ 2007 $43‚269 The difference is $13‚306 for a 44.4% increase. Pepsi 2006 $29‚930‚ 2007‚ $34‚628 The difference is $4‚698 for a 15.6% increase. D) Pepsi had
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26‚ 2011 DAVID B YOFFIE RENEE KIM Cola Wars Contiinue: Coke C an nd Pepsi in 20110 oke and Pepsi vied for “t hroat share” o of the world’ss beverage m market. For more than a century‚ Co The most intense battles in the so-called colla wars weree fought over the $74 billio on carbonated soft drink (CSD) industry in the Un nited States.1 In a “carefu ully waged co ompetitive strruggle” that llasted from 1975 through the mid-199 90s‚ both Cok ke and Pepsi achieved average annual rrevenue grow wth
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COLA WARS : COKE AND PEPSI IN THE 21ST CENTURY” INTRODUCTION "Cola Wars Continue: Coke and Pepsi in the 21st Century” explains the economics of the soft drink industry and its relation with profits‚ taking into account all stages of the value chain of the soft drink industry. By focusing on the war between Coca-Cola and PepsiCo as market leaders in this industry – with a 90% market share in carbonated beverages – the study analyses the different stages of the value chain (concentrate producers
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congenially adapts to supposed differences..... By contrast‚ the global corporation knows everything about one great thing. It knows about the absolute need to be competitive on a worldwide basis as well as nationally and seeks constantly to drive down prices by standardising what it sells and how it operates. It treats the world as composed of a few standardised markets rather than many customised markets.” Theodre Levitt[1] Introduction Companies may enter overseas markets for various reasons
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Marketing Strategy Analysis of Coca-Cola and Pepsi Cola Two famous beverage companies exist in the market today‚ Coca-Cola and Pepsi Cola. Each competes intensely to distribute their beverage and food products to a global market for higher profits for the last several generations. In the free market‚ it can be difficult to determine which company uses the best practices in their marketing strategy as both use similar strategies to expand their local and global markets. In this paper the subjects
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