Introduction
There are few markets in the world as clearly dominated by two companies as it is the soft-drinks one. In this business, “The Coca-Cola Company” and “PepsiCo, Incorporated” hold most of the market share in virtually every region of the world. This is why a big rivalry between them has been growing throughout time. In the present essay I am going to develop the main characteristics of this global battle. For a better understanding, let's take first a look to the principal features of both companies.
The Coca-Cola Company dominates the market by owning four of the global top five soft-drink brands: Coca-Cola, Diet Coke, Fanta and Sprite. Its main activity consists on producing syrup concentrate which is then sold to various bottlers throughout the world who hold a Coca-Cola franchise. The firm makes or licenses more than 400 drink products in more than 200 nations. In 2006, sales hit $24,088 million and net income $5,080 million. 71,000 employees work in the company.
PepsiCo, Incorporated is the biggest snack maker and the second biggest soft-drinks maker in the world. The company manufactures, markets and sells beverages and snacks in approximately 200 countries. In 2006, sales hit $35,137 million and net income $5,642 million. 168,000 employees work in the company.
Historical rivalry
In a hypothetical 0% growth market with only two competitors, the only way to increase sales is to go after competitor's clients. Reality, although different, doesn't differ very much in some national soft-drinks markets (particularly the United States, Canada and the United Kingdom). This is the main cause of the rivalry between Coca-Cola and Pepsi: head-to-head battle is not only habitual in many markets, but also unavoidable in the desire for growth o ...