ipl-logo

Coke And Pepsi: A Comparative Analysis

901 Words4 Pages
bulb-icon

Recommended: Compare and contrast coca cola and pepsi essay

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. As stated by the Company, Coca Cola is one of the leading beverage brands in the world today("Who We Are - The Coca-Cola Company," n.d.). In addition to being it is known as one of the world’s most significant brand, the company has managed …show more content…

When there is a high concentration ratio in an industry, economists typically tend to distinguish the industry as an oligopoly. In regards to the barriers to entry, It would be practically unattainable for a new bottler to enter this restricted industry. They would need to defeat the prodigious marketing influence and market presence of Coke and Pepsi, who had established brand names that were as much as a century old. In elastic markets, changes in price result in unpredictable demand. Hence, the best pricing strategy is to decrease the price in order to increase the sale of a given product. Given that Coke and Pepsi can be considered perfect substitutes, the price elasticity of demand should be perfectly elastic. A perfectly elastic demand is a demand where any price increase would cause the quantity demanded to fall to zero, and reducing the price of a good or service will not increase sales(Keat, Young, & Erfle, 2014. However, there are some factors that results in a fairly elastic demand. Based on Ayers and Collinge, the demand for the carbonated soft drink (Coca-Cola) is very elastic. This indicates that a small variation in price could produce a large change in the demand, which comes from the rivalry that exists in the soft drink market. If Coca-Cola becomes more expensive, consumers may possibly prefer to buy the …show more content…

(n.d.). Retrieved from http://in dustrialeducation.blogspot.com/2008/12/cola-war-continue-coke-and-pepsi-in.html
Conditions for an Oligopolistic Market. (n.d.). Retrieved from https://www.cliffsnotes.com/study-guides/economics/monopolistic-competition-and-oligopoly/conditions-for-an-oligopolistic-market
Coke Vs. Pepsi: By The Numbers. (2014, March 24). Retrieved from https://www.nasdaq.com/ article/coke-vs-pepsi-by-the-numbers-cm337909
How Coke Won the Cola Wars. (2013, August 9). Retrieved from http://www.slate.com/articles/ business/rivalries/2013/08 pepsi_paradox_why_people_prefer_coke_even_though_pep si_wins_in_taste_tests.html oligopoly. BusinessDictionary.com. Retrieved February 19, 2018, from BusinessDictionary.com website: http://www.businessdictionary.com/definition/oligopoly.html
Keat, P. G., Young, P. K., & Erfle, S. E. (2014). Managerial economics: Economic tools for to day's decision makers. Boston: Pearson.
Price Elasticity of Demand - Illustrated for Commerce - Lokad. (n.d.). Retrieved from https:// www.lokad.com/price-elasticity-of-demand-definition

THE COLA OLIGOPOLY. (n.d.). Retrieved from http://carmenchewyimin.blogspot.com/

Show More
Related
1195 Words | 5 Pages

Some of the ways Monopolies because monopolies were through both horizontal and vertical integration, These two processes were the foundation of Industrial businesses like the Standard oil company led by Rockefeller and Carnegie steel, it allowed these power houses to control the amount of competition they had and how much it cost. These companies would have the reduced processing price because they set the price then sold it at a cheaper price, putting other businesses in shambles, An example of this is in (Doc H). This apparent genius of a process made it so people could only buy their product from them, it did allow for them to fix prices for items like food, fuel.(Doc A) this did allow for a sort of comfortable lifestyle that was defined as American consumerism. Through corporations like sears in the 1870s people were able to buy luxuries through this new affordable lifestyle. (Doc I).

Read More
547 Words | 3 Pages

Price elasticity of supply can have multiple effects on a market based on the amount of time needed to react to a price change. There are 3 time categories to describe how mush the

Read More
1270 Words | 6 Pages

Some examples that are inelastic are keyboards and pens. This concept of things being elastic or inelastic can also be incorporated into macroeconomics. Price elasticity of demand refers to the responsiveness of the consumers to a price change. For example some products that consumers are highly responsive to would be buying coffee at a coffee shop because a small price change can affect a large change in the quantity purchased. Since this product is highly responsive it correlates to this product being elastic.

Read More
1420 Words | 6 Pages

Throughout the term in BPBE 272 there has been many important skills I have learned to help me pursue my goal in University. I have learned all key concepts of economics and also learned how to use them in my everyday life. This class has gave me tremendous help on how to look at the world in the way an economist does. You have taught us in a way that did not require us to just memorize the material but to actually take the time to learn about the information we are given. I will explain the main points I have learned in this class, what it means to have learned all of the information, How I have changed my perspective on economics, how I can apply my knowledge in the workforce and why this course was so important to me.

Read More
946 Words | 4 Pages

The price of a good rises from $4.00 to $4.50, and as a result, total revenue falls from $400 to $350. Is the demand for the good elastic, inelastic, or unit-elastic? The demand for the good is elastic because as the price of the good rises the total revenue falls. Good A has 10 substitutes, and good B has 20 substitutes.

Read More
512 Words | 3 Pages

Attributes of a hero have remained the same over time, which is shown through Greek heroes like Hercules demonstrating the same traits as modern heroes like Batman, Superman, or Wonder Woman. One of the traits Hercules and Batman share is their passion for becoming a hero. The audience can see this characteristic during the “I Can Go The Distance” song when Hercules proclaims, “Somehow I'll be strong, I know every mile will be worth my while, I would go most anywhere to find where I belong.” Similarly, the audience can see Batman's passion each time he drops whatever he is doing, changes into his elaborate costume, and risks his life to save the city of Gotham from villains like The Joker and Bane. Another trait that Hercules shares with a

Read More
1391 Words | 6 Pages

Dr.Pepper is a better soda brand than Coca Cola, because it has less caffeine and better flavors than Coke. Some people agree that Dr.Pepper has more sugar and doesn’t taste nothing like Coke. While others disagree that Coca Cola is a better Beverage. Because if you drank Dr.Pepper you can easily taste a bit of cherry in your mouth having your mouth smell like cherries. According to Debate.org an Investigator RacH3ll3 had mention that Dr.Pepper is a better drink stated,” Dr. Pepper taste better also it has less acid than coca cola.

Read More
819 Words | 4 Pages

ECONOMICS PROJECT Name: Saatwic Malhotra Course: BBA.LLB (H) Section: A Enrollment Number: 7058 ACKNOWLEDGEMENT I express my sincere thanks to Mrs. Tanu Sachdeva, my economics teacher who guided me throughout the project and also gave me valuable suggestions and guidance for completing the project. She helped me to understand the issues involved in the project making besides effectively presenting it. My project has been a success because of her. PEPSICO • PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Purchase, New York. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products.

Read More
814 Words | 4 Pages

Coca Cola took note of this, and realized that loan interest rates would likely rise as the economy returned. Thus, they took out low cost loans in 2001 to fund growth in 2002. They used the loans for research and development on new products to capitalize on in a strong 2002 economy. Currently, as global growth is slowing, Coca Cola may be watching for a similar opportunity. Social Analysis and Factors Social factors that affect the sales of Coca Cola 's products include the following: 1.

Read More
1506 Words | 7 Pages

Price and demand of an item is significant viewpoint which must be considered by Toyota in promoting economy as price and demand impact purchaser what to purchase. Customer’s demands all the more in lower price and less at higher price. Price elasticity of demand is a measure of the greatness by which customers modify the amount of some item that they buy in light of progress in the price of that item Boyes and Melvin (2012). Price elasticity of demand will help Toyota to decide the amount an

Read More
1101 Words | 5 Pages

Hence, we can say that these 2 players are involved in a non-cooperative game, the objective being to garner the most profit, and capturing market share being the most effective way to do so. Since Coke and Pepsi are perfect substitutes, the price elasticity of demand should be perfect elastic. However, there are some factors that results in a fairly elastic demand. When Coke increases its price, most of its customers that are highly sensitive to price changes will switch to Pepsi due to the similarity of the taste. Nevertheless, some of its customers that are highly loyal are willing to pay more for Coke

Read More
2752 Words | 12 Pages

But with the changing tastes of consumers, it has expanded its menu which now includes salads, fish, wraps, smoothies, fruits and seasoned fries. The Coca-Cola Company, makers of coke, sprite, fanta, diet coke, coca-cola zero etc. The coca-cola company operates/sells beverages in more than 200 countries around the world. The most popular and selling drink of the company around the world is coke.

Read More
1870 Words | 8 Pages

They are differentiated by their products such as soft drinks and soap powder. There also exist little firms who produce similar products such as petrol. However, in oligopoly, there are barriers to enter the market. Similar to monopoly, the barriers are no different, and it differs from one industry to the other. This is why the firms in oligopoly are interdependent with each other, because the firms all have large market shares and each of their actions would affect the rest, so any decision-making will be based on their competitors’ reactions.

Read More
1093 Words | 5 Pages

Coca-Cola strives to utilize every strategy available to become successful whenever it launches its business in overseas markets. Pepsi seemed to have discovered Coca-Cola’s disadvantages and it was using them to check Coke’s dominance. The new market structure brought about cut throat competition between the two cola giants. However, the competition ate into a large chunk of the two companies’

Read More
1039 Words | 5 Pages

• Many successful brands to pursue. • Advertise its less popular products. • Buy out competition. • More Brand recognition Advantages of coca –cola Market Leadership: Coca-Cola FEMSA is one of the biggest franchise bottler of Coca-Cola trademark beverages in the world, with operations in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Argentina, Brazil and the Philippines. Business partnerships: Coca-Cola FEMSA is cooperating with The Coca-Cola Company to grow more propelled joint plans of action to keep investigating and taking part in new lines of refreshments, expanding existing product offerings and successfully publicizing and advertising our items.

Read More

More about Coke And Pepsi: A Comparative Analysis

Related Topics

Open Document