Cold war continues: coke and Pepsi in 2006

Subject: Consumer Behavior

Paper Model: APA

Paper Type: Assignment

Total Words: 706

Document Outline

Why coke and Pepsi so profitable

Why did coke change his formula for the new coke in eighties? Why did it fail?

What are their main strategic challenges for the next five years

 References:


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The coke and Pepsi are so profitable due to changing trends according to the customer demands.  These companies broadly spend capital on their marketing strategies to gain high customer satisfaction. The operational cost of product and services in this product category is very low and required high quality products. Both bottlers and concrete producers are profitable.  The cost of procurement, marketing, production and distribution system is relatively low that shows high profit margins.

Due to head –head competition of coke and Pepsi, both companies flourish best exploitation of opportunity in gaining high market share. Focuses on emerging markets are the major competitive edge for coke and Pepsi for profitable business. Carbonated and non-carbonated drinks are provided by both cola companies. These two companies are leader in delivering cola products. Globally expanded as well as business partnership with Bottlers Company are comparative advantages for both companies to become so profitable. (YOFFIE, 2009)

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