Business Rivalries Coke vs. Pepsi, Samsung vs. Apple, Burger King vs. McDonalds are just a few popular business rivalries found throughout history. Big businesses love competition between other businesses. These rivalries influence companies to compete with each other to see who can bring in the most customers. Rivalries yield many helpful benefits companies love. Business rivalries create a diverse crowd, create sponsorship opportunities and bring in more money for the company. Popular business rivalries bring in more diverse crowds of people. People these days tend to spend more and more money. Knowing this, businesses realize a good opportunity to make more money. People look for businesses to be diverse or different from the other companies. …show more content…
Being the complete opposite of a rivalry, an alliance can help two companies form alliances. For example, when businesses compete for sponsorship opportunities, it will help form an alliance with the event sponsoring the business. If the Superbowl chooses Pepsi to be sponsored in their event, Pepsi is more likely to be chosen in the future. Occasions where an event will sponsor a business happens very frequently; the Superbowl, NBA finals, the Olympics and many more events are a few examples of events that sponsor these businesses. Pepsi has been supported by the Superbowl and NFL for a long time while Coke has been supported by the Olympics. At these events, the product being sponsored will only be sold at the event. When only one type of product is being sold at a large event, the owners of the product will make a lot more money than other competing businesses. However, cell phones also use sponsorships to create alliances and rivalries. If Apple can appeal to companies like Best Buy and Amazon, they could help Apple sell more products. Situations like that give Apple an advantage to sell more cell phones and other products. When this happens, it will cause undecided people to choose Apple as opposed to Samsung. With these sponsorship deals comes other alliances in the corporate world. Since the Superbowl sponsors Pepsi as well as Lays, Pepsi and Lays have formed an alliance to compete against other businesses. Since then, Pepsi and Lays have been releasing exclusive deals when both products are bought with each other. For example, Tostitos are owned by Lays and when a consumer buys both Pepsi and Tostitos, they receive a code in their products. This code can be entered online to win an ultimate prize. Businesses today use this strategy to encourage consumers of Pepsi and Tostitos to keep buying so businesses can make more money. Apple and Samsung communicate with other cell phone providers such as Verizon
The National Football League (NFL) and NASCAR thrive on sponsors and vice versa. An NFL game is by far the most watched single game event in the country and gaining popularity exponentially worldwide. Their championship, the Super Bowl, is arguably the most watched television program in that particular year. In NASCAR, the Daytona 500 is their “Super Bowl” and is a very large event in its own right. Corporations all over the world jump on these mega advertising vehicles with the hope that their name is popularized which will result in profitability. In many cases, most of those who do buy airtime during NFL games, the Super Bowl, and during the major NASCAR races are very visible names and products that we already know about. Most of the time, these companies are trying to market new products or products that have been enhanced.
Citizens of the United States of America enjoy a lifestyle of freedom unlike that of any other country in the world. Companies and businesses are expected to comply with the standards of the average consumer; with that being said, American citizens are much more likely to file a law suit than consumers of a different nationality. In the year 1994 alone, thousands of law suits were filed (FindLaw). The most notable case, with exception to the Denny’s payout, was Stella Liebeck versus the popular fast food chain McDonald’s. Stella sustained third-degree burns when she accidentally spilled a McDonald’s cup of coffee onto her lap. She spent eight days in the hospital, receiving skin grafts for burns on her pelvic region. Stella was awarded $2.86
As soon as a competitor changes their plans or a new competition comes along customers may not want to change their mind about going to a different location (Belonwu). Having a “rivalry” may help concentrate on what needs to be improved in a business depending on what their weaknesses and strengths are. Having competition may be wonderful for the consumers because they have different choices to select what kind of brand of clothing, shoes, or a variety of tools, food and etc. Being able to choose a certain type of customer, may bring in a flow of customers that they’re are trying to reach out for; such as Walmart, they chose to sell products that are family oriented while having different areas in the store pertaining to men’s, women’s, and children’s necessities. If a customer is loyal and you all of a sudden are raising prices on items where they can get goods at a lower price elsewhere, that is causing a business to be disloyal due to competition.
According to Porter, the key factors rising rivalry among firms in an industry are equally-balanced competitors, market maturity, high exit barriers and high fixed costs. And all of these factors are there in teams in the National Basketball Association (NBA).
Pepsi by all means, will not hesitate to when promoting their products and in fact, Pepsi has been spending over one billion dollars on advertisements, gaining thirty-four millions Facebook likes and two million Twitter followers (O’Brien. "Coca Cola vs. Pepsi: Comparing Sales, Earnings & More"). They also sponsor some of the famous American sports for instance, NFL (national football league), the NHL (national hockey league), and just recently, they have also replaced Coke, as a NBA sponsor (national basketball league) who was a major sponsor for two years in a row (Alesci, Rooney). Pepsi has a huge impact of today's generation and will not balk at anything to come to the
Sponsorship plays an essential function in the running of the Olympics. Money from sponsors is used for administration, travel and accommodation for the athletes and officials, communication and equipment. In the Barcelona Olympics of 1992, there were 44 companies included in The Olympic Programme (TOP). The commercialisation or Americanisation of the Games involves many multinational companies like McDonald's, who have been involved with the Olympic Movement since 1976 when it became an official sponsor of the Olympic Games in Montreal. McDonald's joins The Coca-Cola Company, Kodak Company, Sema Group, TIME/Sports Illustrated, Xerox, and VISA as TOP V sponsors, to name a few.
Athletes are offered endorsements to act as a representative for a company to help promote sales. They often are seen in commercials promoting athletic apparel, shoes, sports drinks, food, and other products. Marketing companies know that by associating a product with an athlete it can drastically increase sales.
1. Intensity of rivalry among competitors- there is intense rivalry among the automobile industry. There is only a handful of companies in the world, and it is war to survive.
Rivalries are very entertaining, but how are they caused? A good rival has some form of similarity between the
customer at a time. They are more concerned with the quality of the service tha
Cell phone manufacturers and service providers are at the core of the cell phone industry. These corporations are integral from their research and development endeavors to interactions with the consumer and the marketing of new products. The companies that control such factors of cellular phones are very numerous, so it is difficult to address all the cell phone manufacturers and service providers. However, we have focused largely on only the most significant cellular companies namely in the U.S. marketplace, although many have global ties. Collectively, companies around the world have the same goals in mind – to create desirable cutting-edge technology and to increase consumer satisfaction with hopes of generating sales, and thus profits.
Place: PepsiCo uses a global network for distributing its products to consumers. Most PepsiCo products are available at retailers, such as supermarkets, grocery stores, and convenience stores. However, customers can access PepsiCo-licensed merchandise like tumblers and t-shirts through retailers and their websites. Based on this element of the marketing mix, PepsiCo’s places for distributing its products are mostly non-online
Effects Sponsorships have on Sports. Sponsorships have become a huge part of the what we see when we go to a sporting events or watch them on television even if we do not notice. Many NFL and NBA teams have businesses and corporations sponsoring them. There are many effects that sponsorships have on a sport team, some good some bad. What are these effects and how do they impact these partnerships?
Knowing your competitors is essential to gaining understanding of the market. Knowing your industry is important and specially paying attention to current business buying trends as well as trends within your industry. Paying attention to business trends in your industry will allow you to gain insight on how to eventually position your product successfully. Researching industry trends will also allow your business plan to be more efficient because it is based on real life circumstances. Once you are certain that your business idea will reach your specified level of success, consider making sure that your market will be receptive to accepting your product or service. If you are investing your own capital you will want to make sure that you have protection by making sure that you have done all of your homework.
Price and advertising strategy: PepsiCo Overhauls Statergy. PepsiCo plans on saving 1.5 billion dollars in...