In response, Pepsi had to cut its advertising and drop its selling price, decreasing its cost advantage (Coke and Pepsi’s uncivil). However, it is necessary to focus on three ways which the companies use to compete within the market and take the leading positions. Pepsi’s advertising is a major strength. Competitive benefits is the benefit a company or product has over other companies in terms better attributes such as cost edge, differentiation advantage, network circulation, and customer care that will help the business gain better sales in comparison to other companies (Hao, Ma 1999). Pepsi’s range of healthy products has grown in recent years. It’s a surprise that something can keep its value for so long. PepsiCo is a multinational company that deals in snack food manufacturing and beverages, among others. In the quest for creating competitive advantage, companies struggle to build unique capabilities and to acquire the means to protect these capabilities. The company has a great portfolio of food and beverage which provides more choice to the customers. But that burst tends to dissipate over the course of an entire can. Pepsi's Diversified Revenue Stream Gives It an Advantage over Coke jacobwolinsky@gmail.com (Jacob Wolinsky)via The Motley Fool Jan. 22, 2013 Updated: Jan. 22, 2013 10:23 p.m. Sources of Competitive Advantage: PepsiCo has competitive advantage in terms of worldwide distribution & the company is able to produce all its products in the country where they are consumed. PepsiCo Business Strategy and Competitive Advantage By John Dudovskiy. And Coca-Cola is superior in this thing. Yet Coke re-entry into India was a great threat to the company. A competitive advantage is simply what a company excels best at. In 2010, for the first time, both Coke and Diet Coke surpassed Pepsi’s sales, leading the Wall Street Journal to run a headline declaring Diet Coke the winner in the Cola Wars. A company must have a sustainable competitive advantage because it benefits the company in longer runs. A comprehensive research and analysis of competition is one of the most significant elements of an in-depth market analysis. Sources of competitive Advantage for Coca Cola. PepsiCo Diversification beyond Drinks. Coke followed in 1999 with Dasani. The goal of much of business strategy is to achieve a sustainable competitive advantage. Marketing :-Pepsi’s marketing strategy is a key strength. Moreover, management strategies have raised concern over its reaction to criticism on health and environmental issues. Coke and Pepsi are huge players not just in following brand design trends but in setting them. When looking at the Pepsi group, both Ica and Pepsi were rated the same, “much tasty”, with as much as 44.8 percent respectively, while only 10.3 percent thought Coca-Cola was the tastiest. While cool-drink consumption has declined in recent years as people ditch sugary drinks, Coca-Cola found success advertising its cola brands under the "One Coke" umbrella and in its Diet Coke relaunch earlier this year. It also markets and distributes these products. With the Indian markets, Pepsi had the first-mover advantage over Coke. Apart from juices and waters, Pepsi has also brought more low and zero calories foods. By the late 1990s to early 2000s, Coke began to lose the competitive advantage that it had on Pepsi in profit in the United States. In the local supermarket the consumer considers buying the drink as part of a 6-pack for the smallest price available. Further, branding is a dangerous game. It generates over 60% of its revenue and 80% of its operating profit from outside the United States. The Cola Wars between the two industry giants Coca-Cola Company and PepsiCo continues today after over 100 years of rivalry. And it continually uses diversification into snacks over soft drinks. The company, PepsiCo manufactures Pepsi which is a carbonated soft drink was developed in the year 1893 by Caleb Bradham. Pepsi, in short, is a drink built to shine in a sip test." There are two basic types of competitive advantage:(1-2)[3] 1. Now you do. Pepsi has a competitive advantage over Coke because of its brand image & good word of mouth. Coca-Cola exceeds the vision, by selling a variety of beverages daily. The Coke Pepsi Rivalry : When the cola giants, Pepsi and Coke, entered the Indian market, they brought with them the cola wars that had become part of global folklore. A competitive analysis enables you to assess the strengths and weaknesses of your competitors. Strong Brand Image: Coca-Cola has maintained a very strong brand over the years. The price war between Pepsi and its competitors has been continual for decades. The American companies have jostled for consumer attention with pointed ads over the decade. While Coca-Cola determines entertainment, optimism, and passion as the main concepts to promote the product, PepsiCo focuses on the other segment of the target audience, emphasizing the idea of the healthy lifestyle and high-quality nutrition. However, Coke secured a huge contract with Burger King in 1999, but because of a heated bidding war with Pepsi, Coke had to make a large concession by doubling $25 million in rebates to Burger King. This soft drink was introduced in the nineteen century. Each evolution of a brand can either result in neutrality, which seems like a waste of money, improvement or a decline in the eyes of the public. Though Pepsi and Coke sold reverse-osmosis purified water instead of spring water, they had a distribution advantage over competing water brands.26 Coke and Pepsi launched other PepsiCo has an extensive portfolio of food and drinks with 100 brands serving. 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