Currently, the main competitor for the Coca – Cola Company is the PepsiCo, Inc., which also has a wide range of beverages under its brand. Both of the companies are the leaders of the carbonated soft drinks industry and they compete in order to surpass. Both companies committed heavily to sponsoring outdoor events and activities in order to advertise their products or brands. Also, there are other soda brands in the market which became popular as they have unique flavors. For example, Dr. Pepper could succeed to emerge in the market with its unique taste.
Coca-Cola has more than 300 bottling partners. These partners range from small family owned operations to publicly traded businesses. In order to work cohesively and meet the need of all their customers, Coca-Cola has implemented the Coca-Cola System in which they work together with their partners and develop strategies to benefit the full ecosystem. The benefits from the cooperation is a well-balanced combination of skills and creating diversity and establishing greater capabilities within the
Coke and Pepsi are the two of the most influential brands of beverages in the world. These two industry leaders make up a total market share of over 70% in the carbonated soft drink arena. According to research, Coke’s market measure is over 40% while Pepsi trails at a market share of over 30%("Coke Vs. Pepsi: By The Numbers," 2014). In the beginning, Coca Cola accounted for about 80% market share, while Pepsi had a 20% market share. Both the companies have been exemplified immense longevity for decades.
With the shift in the market away from heavily sugared carbonated beverages, Coca-Cola has had to adapt their product line to stay competitive and profitable. As shown in the Nasdaq, over the last few years their current assets were trending downward and have turned around to start tending back upward. The shift in the standards of the consumer for a healthier choice is a microeconomic factor that has affected the financial statements and debt and asset ratios. The purchase of the companies that allowed Coca-Cola to expand into other opportunities and markets, and to remain remain profitable, also vastly increased their long term debt Therefore, even though the long term debt was increased by 30%, which would seem indicative of a negative financial aspect, it actually is a positive for the company’s profitability. Even with the smaller portion cans and campaigns to balance what you drink with your exercise levels, I believe that Coca-Cola’s financials would look much different without the acquisition of the additional companies, most notably the Monster beverage company.
Coca-Cola's direct competitor is PepsiCo whose strength is low carbonated & energy drinks, weakness is snack foods. PepsiCo uses celebrities to attract customers. 60% of its profits come from snack foods & 40% from drinks, PepsiCo has growing profits by 15% per annum. With Coca-Cola's strength being in fizzy drinks, competitors would try to capitalize on its weaker products. Coca-Cola has recently acquired Subway soft drink business, which was previously served by Pepsi.
Therefore we would expect that the demand for both Coke and Pepsi is similar. However, Coca-Cola has the lead in this industry, Coca-Cola outsells Pepsi Cola by around five to six times in the whole cola market. The two firms have had an interesting past and during the great depression from 1922 to 133 in three different occasions Coke has been offered the opportunity to buy Pepsi, but they have declined every time. However, since then there has existed a lot of competition between both kola producers. They compete by spending billions of dollars on advertising, celebrity endorsements, and slogan campaigns.
Coca-Cola is a well known brand around the world and according to the company itself, each day over 1.9 billion beverages are served to customers by The Coca Cola Company. Up to now, Cubans have not been able to buy the drink, as The Coca-Cola Company’s beverages are not officially sold in the country due to the United States trade embargo against Cuba. However, if The Coca-Cola Company were to enter the Cuban market, it might face an ethical dilemma regarding the health of the consumers. The reason why Coca-Cola is such a popular drink around the world is, besides its marketing campaigns, the unique taste of the drink. The exact recipe of the drink is unknown, The Coca-Cola Company possesses a secret syrup, which its bottlers combine with carbonated water in order to create the world famous Coca-Cola drink.
In the carbonated soft drinks industry, Coke Cola and Pepsi Co are the biggest players in the market for aerated beverages. Both the companies have been competing strongly against each other for decades. The market is dominated by these two industry leaders with a total market share of 72%; Coke’s market share is 42% and Pepsi’s 30%. This is known as an oligopoly market; where there are few large firms competing with each other in the industry. Since both the company’s market share so large, the market is very close to a duopoly (other players having a very small impact on the market).
HISTORY & BACKGROUND OF COCA COLA The Coca Cola company is known as one of the world’s largest carbonated soft drinks company that began before World War II. It is an American-based company found in 1886 by an Atlanta pharmacist. Dr. John S. Pemberton created the formula of French Wine Coca, which is known as Coca Cola now and introduced the carbonated soft drink as a patent medicine at first. The beverage became more noticeable when Frank M. Robison, Dr. Pemberton’s partner changed the product name and created the famous script logo, which he believed that will attract customer in advertising.The marketing phenomenon grew even bigger when the small company was bought over by Asa Griggs Candler prior of the founder’s death in 1888. Candler 's decision was what made the Coca Cola Company so successful today due to his interest and aggressiveness in marketing this product.