Subject: Economics

The competition between “Coca-Cola”and “Pepsi” in the market for soft drinks

Abstract
There are two types of people – the ones who like “Coca-Cola”, and the ones who prefer “Pepsi”. Or at least that is the fact that trying to convince us the marketing experts from both companies. The two famous brands compete with any means to persuade whose drink is better. The solution to this problem relies on both of the companies’ abilities to boost the domestic sales, to prove to new international markets, to broaden their brand for new streams of revenue and include non-carbonated beverages in their “big plan”.

Competition analysis
Nowadays competition is not only commonplace, every year it becomes increasingly fierce. Many companies move theor production to countries with lower standards and bring to market cheaper goods. Once the company finds it’s most important competitors, it has to analyze them by specifying their characteristics, especially their strategies, goals, strengths and weaknesses. Group of companies that follow the same strategy of a target market is called strategic group. If a company wants to enter a particular industry, it develops a strategic and discovers four groups based on product quality and the level of vertical integration. This analysis shows that the height of the barriers to entry is different for each group. Once the company finds its main competitors and their strategies, it must be asked: Looking every competitor on the market? What dictates the behavior of each competitor? Although one of the main conditions is that all competitors seek to maximize their profits, companies give different weight to short-term and long-term profit. Whether competitors can implement its strategies and achieve its objectives depends on their resources and capabilities,