PEP are very similar businesses in terms of industry, ideal consumers and flagship products. There are not many new or emerging markets that remain untapped for either company. In a scenario where the beverage industry declines in overall revenue, PepsiCo is positioned to take advantage of the situation, while Coca-Cola may falter.
However, both companies have made a push into the energy drink category. In addition, both companies offer ancillary products such as consumer packaged goods.
KO and PepsiCo, Inc. Keeping with the theme of diversification and product complements, Coca-Cola bought a large stake in Monster Energy inand PepsiCo decided to start its own energy drink: Delivered twice a week, straight to your inbox. Since every large market has been fully tapped by the beverage industry, the remaining smaller markets require efficient operations to turn a profit and make a lucrative investment, since the sales volume felt in countries such as the U.
Get a free 10 week email series that will teach you how to start investing.
In contrast, Coca-Cola only focuses on a diversified product portfolio within the beverage industry and has few products outside of that industry. What is interesting to note is that Time Magazine also reports that the energy drink segment of the beverage industry has captured year-over-year growth over the past 10 years.
Diversified Business Model PepsiCo is a company known for a highly diversified product portfolioboth within the beverage industry and in other industries such as the consumer packaged goods industry. Even though Coca-Cola may have an advantage with a more focused business model, PepsiCo created a scenario where one product the company owns may induce a consumer to purchase a second product the company also owns.
In contrast, Coca-Cola has made efforts to dominate the beverage industry almost exclusively and shied away from the cross-promotion of multiple products in multiple industries. However, Coca-Cola has more focus within the beverage industry, allowing it to make key investments and communicate key messaging with consumers.
This allows both companies to take advantage of the few new and emerging markets left. This push highlights the fact that sales volume for Diet Pepsi and Diet Coke has declined steadily over the past 10 years, according to Time Magazine.
On the surface, Coca-Cola and PepsiCo have very similar business models. According to Information Resources, Inc. As potential investors dig deeper, however, they find key differences and key similarities between the two business models that make the companies what they are as of Efficient Business Operations With both companies facing market saturation, Coca-Cola and PepsiCo have made strong commitments to more efficient operations in Both Coca-Cola and PepsiCo are global leaders in the beverage industry, offering consumers hundreds of beverage brands.
Trading Center Want to learn how to invest?
These more efficient operations help both companies increase the price per share given it should result in higher earnings per shareor EPS, even if sales remain flat.Business Elements of Pepsi & Coca-Cola Introduction The following is a comparison and contrast of the business elements based on a number of business elements like management and operations and on environmental aspects using SWOT and PEST.
PEPSI has been the market leader in cola industry in Pakistan, here their business strategy is low cost leadership, below presented marketing plan is made keeping in mind the business strategy.
Company Analysis. BUSINESS/ADMINISTRATIVE SERVICES – It’s the business of running our Business Plan on Coca-Cola Ltd. At The Coca-Cola Company. guests and others around the world in an expeditious. Opportunities are available in Administration.4/4(8). Business Plan on Coca-Cola Ltd.| 8/8/ Business Plan Business plan On Course: Introduction to Business (BUS) Semes 5/5(2).
Comparing Coca-Cola and Pepsi's Business Models (KO, PEP) The following are four key comparisons between Coca-Cola and PepsiCo's business model that make the two companies fierce competitors. Coca-Cola and Pepsi have been battling each other for more than a century. It's a legendary brand rivalry.
The fight has often gotten personal. Most recently, Pepsi went after Coke's famed mascots.Download