Management Report of the Comparison between Coca-Cola and PepsiCo

1744 Words4 Pages
bulb-icon

Recommended: Coca-Cola vs Pepsi case study

Current Strategic and Financial Analysis Introduction: A SWOT analysis for Coke and Pepsi will cover the following: The company’s strengths and competitive advantages over the other; The weaknesses of external and internal factors leading towards a decline in revenue sales; Opportunities to buy into and make risky business decisions of either entering new markets or acquiring another company; Threats to the market and legal cases that each company faces. Coca-Cola Strengths:

• Today Coca-Cola controls 42% of the soft drink market. The “Coca-Cola” logo is known world-wide selling more soft-drink products than any other producer.

• Coca-Cola is valued at over 67 billion dollars. The current gross profit margin is 65.7% which has increased since last quarter.

• Coca-Cola is a drink driven market selling over 230 brands of soft drinks, energy drinks, juices, and water.

• Most of Coke’s sales come from the international market rather than the US.

• The company makes high profits every year and heavily markets their product through commercials, billboard ads, and celebrity testimony. Its branding creates customer appreciation and therefore a higher respectability for the actions that the company does for non-profit organizations and worthy causes.

• It has ownership in fast food restaurants and distributes to event centers creating a broader distribution market.

Weakness:

• Pepsi has the competitive advantage for multiple product related diversification in snacks and juices.

• Current trends are showing that custom...

... middle of paper ...

...1). Salary.com. Retrieved April 30, 2014, from http://www1.salary.com/Executive-Salaries-Search-Result.html?q=pepsico

Why Coca-Cola (KO) Shares Are Falling Today. (2014, March 31). The Street. Retrieved April 30, 2014, from http://www.thestreet.com/story/12577819/1/why-coca-cola-ko-shares-are-falling-today.html

PepsiCo Announces Plans for $5 Billion Investment in Mexico. (2014, January 24). The Wall Street Journal. Retrieved April 30, 2014, from http://online.wsj.com/article/PR-CO-20140124-907542.html

PRNewswire Environmental Protection Agency Recognizes PepsiCo for Energy Efficiency Excellence. (2014, April 3). Article. Retrieved April 30, 2014, from http://www.pepsico.com/PressRelease/Environmental-Protection-Agency-Recognizes-PepsiCo-for-Energy-Efficiency-Excelle04032014.html

http://www.strategicmanagementinsight.com/swot-analyses/pepsico-swot-analysis.html

Show More
Related

  • Persuasive Essay On Coke Vs Pepsi

    824 Words  | 2 Pages

    Coke continuously out-stands Pepsi, even though they share a very similar taste and colour, however Coke should not be the drink that receives all the love and attention for what it offers. Despite their similar soda colour, the drinks actually contain some different ingredients, which produce a different taste, and affect the body differently. Furthermore, the way the companies markets their drinks makes a huge contribution to how successful their products will become. The major element for success however stems from their impact on society and how the companies utilize their social power to evolve. The two major soda companies are constantly head to head with one another, yet it is what they do that sets them apart.

    Read More

  • Cola War Between Coca-Cola and PepsiCo

    1372 Words  | 3 Pages

    Key success factors in the industry are a strong brand presence, maintaining customer loyalty as exploring new markets and distribution channels as well as offering a diversified product line. Implications of these factors are strong competition and dependency of company’s behavior and marketing strategies on competitors’ behavior. This is especially true for Coca-Cola and PepsiCo since their flagship products are very much alike in look and taste.

    Read More

  • Analysis of the Coca-Cola Company

    2330 Words  | 5 Pages

    Analysis of the Coca-Cola Company The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Company markets many of the world's top soft drink brands, including Coca-Cola, Diet Coke, Sprite and Fanta. Through the world's largest and most pervasive distribution system, consumers in nearly 200 countries enjoy the Company's products at a rate of more than one billion serving a day.

    Read More

  • Comparing the Profitability of Pepsi and Coca Cola Companies

    1829 Words  | 4 Pages

    The average industry profit margin was at about 11.3 percent (Biz Miner 2005). This means that Pepsi Co is average, and maintains a solid profit. While Coca Cola's profit decreased ever so slightly, it was still higher than the industry average. Another look at profitability can be determined by analyzing the efficiency of each company. To do this, a ratio would evaluate how efficiently assets are used to generate sales( Weygandt 2008).

    Read More

  • Case Study on Coke versus Pepsi

    1064 Words  | 3 Pages

    How has the competition between Coke and Pepsi affected the industry’s profits? Can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-carbonated drinks? The soft drink industry is a highly profitable industry and its success is due to the large consumption of non-alcoholic beverages through which both concentrate producers and bottlers are profitable. Given the U.S. Industry Consumption Statistics, Exhibit 1, it is clear that, after deducting beer and wine, soft drinks account for about 90 % of the total liquid consumption, while Coke and Pepsi account for about 75 % of the soft drink industry. The high consumption of CSDs is related to the soft drink industry selling to consumers through five principal channels: food stores, convenience stores, vending, fountains and others.

    Read More

  • Coca Cola Financial Analysis

    1375 Words  | 3 Pages

    Coca-Cola Company has over 500 nonalcoholic brands including juices, energy drinks, and water, among others. It is undisputed the largest beverage firm globally. The firm started operations in the year 1886 in the United States, but currently, the company operates in over 200 countries ("Form 10-K", 2017). The firm prides itself on globally recognized nonalcoholic brands such as Coca-Cola, Fanta, Sprite and Diet Coke. One of the critical successes factors of the company is its efficient distribution system that makes it possible to distribute the products to every part of the world. The company has a network of companies controlled or owned

    Read More

  • Food and Beverage Industry: The Case of Coca Cola

    2923 Words  | 6 Pages

    Coca cola (coke) world’s familiar brand generally belongs to the food and beverages industry in specific belongs to beverages industry .Coca cola is multinational company which got a dominate market share in beverages industry throughout the planet.There are 27 different varieties of coke made by Coca-Cola. Around 10,450 varieties of drinks made by Coca-Cola are consumed around the world (around 200 countries) each second of every day .some of the other brands under the Coca- Cola Company are: –

    Read More

  • Coca Cola Social Media Analysis

    1610 Words  | 4 Pages

    Weaknesses – Coca-Cola is a very successful company with an impeccable social media following. Word of mouth is probably a strength, but only when feedback from consumers is positive, but there are people who are against Coca-Cola and their products. Even though Coca-Cola produces over 200 brand products, Coca-Cola lacks the social media popularity of other brands that they produce (Moth, 2013). Many drinks that they produce are extremely popular such as Coke or Sprite, but there are a lot of Coca-Cola products that are unknown, unseen, and unavailable for

    Read More

  • Coca-Col Marketing Mix Assignment Of The Coca Cola Company

    1844 Words  | 4 Pages

    As the world 's largest manufacturer and distributor of non-alcoholic beverages, Coca-Cola is certainly no stranger to global marketing. Established in the US, Coca-Cola initiated its global expansion in 1919 and now markets to more than 200 countries worldwide. It is one of the most recognizable brands on the planet and also owns a large portfolio of other soft drink brands including Schweppes, Oasis, 5 alive, Kea Oar, Fanta, Lilt, Dr Pepper, Sprite and PowerAde. Despite this, Coca-Cola often struggles to maintain its market share over its main rival PepsiCo in some overseas markets, particularly Asian countries.

    Read More

  • Coca Cola Bottling Company: Planning, Management, Leading and Controlling

    1550 Words  | 4 Pages

    Coke Facts – The Coca Cola Company – Coca Cola India: Key Facts - Coca Cola Business, website: http://www.cokefacts.com/facts/facts_in_keyfacts.shtml

    Read More

  • Essay On Coca Cola International Strategy

    1397 Words  | 3 Pages

    Coca-Cola is a historic brand that is by far, the biggest beverage brand ever created. Coca-Cola has been in existence for 127 years and is playing a big role in people lives just as it did over a century ago. To know that Coca-Cola was created in the state of Georgia adds to my pride of being a native of Georgia; however Coca-Cola has grown beyond the backyards of its Atlanta headquarters. Coke is recognizable around the world and has been establishing itself in the homes of Eastern Europe civilization since World War II. Years after the war, Coke has a reputation overseas as big as their reputation back home in the United States. Coca-Cola scored over 90% in brand awareness among respondents from the US, Canada, UK, France, Germany and Australia.

    Read More

  • Research Paper On Pepsi

    2038 Words  | 5 Pages

    Different markets across the world follow different set of regulations, which are either relaxed or severe. Competitive pricing is a factor, which the firm should keep in mind all the time. The scenario is very important because there can be civil disturbance, fall in sales due to inflation, or cross-border situations. As a result, Pepsi has to stay updated with all changes and policies in order to adapt. e. SWOT Analysis: i. Strength’s:

    Read More

  • Coca Cola Competitive Advantage Essay

    910 Words  | 2 Pages

    Coca-Cola is a company with sustainable competitive advantage. The company is innovative and has an extensive business model with boasts of a sustainable distribution network. The company was incorporated in the late 1800s to commence the production of a sweet fizzy beverage that has become the world's most known brand. Presently, the company is still on an upward trajectory as it remains one of the world's most sought-after stocks. The company's competitive advantage has shown resilience and sustainability over the years.

    Read More

  • Coca-Cola Brand Image

    809 Words  | 2 Pages

    Coca - Cola : Claims, Values and Polices Coca-Cola is a well-known and cherished brand name. When people think of this name, memories tend to overflow in their heads. Why do you need to be a member? Because, not only does Coke taste great and refresh your own personal memories, it also fills you with memories of the Coca-Cola like "Always Coca-Cola", the antics of the Coke polar bears, and all of the different ads that have represented Coke over the years. Just about every ad you see, as a consumer, has tons of hidden meanings.

    Read More

  • Compare And Contrast Coke And Pepsi

    946 Words  | 2 Pages

    Coke and Pepsi have been raging war for over a century now, turning their sodas into a multi-billion-dollar industry. Coke has been able to drive more earnings for its bottom line, and while Coke’s net income has been trending downward in recent years, it manages to stay ahead thanks to superior margins. Pepsi, on the other hand, has produced consistent net profit margins of around 10%, while Coke margins have been in the 15-18% range for the past several years (O’Brien). Every company has a Market Cap, which is basically a fancy way of saying how much the company is worth, and Coca-Cola’s market cap is a whopping $180 billion. Pepsi’s Market Cap is $150 billion, which may not seem like a big difference, but $30 billion is a lot of cheddar. Therefore, Coca-Cola owns 51% of the soft drink market, whereas Pepsi only owns 22% of it. Coke claims to own a total of 35 different brands, including Fanta, Sprite, Powerade, Vitaminwater, and many others. Pepsi owns 22 different brands, including 7up, Gatorade, and Mountain Dew “Coke (Coca-Cola) vs Pepsi - Soda

    Read More

More about Management Report of the Comparison between Coca-Cola and PepsiCo

Open Document