Coca-Cola versus Pepsi-Cola: Competitive Strategies Essay

Coca-Cola ( puff) and Pepsi-Cola (Pepsi) defy been the most ordinary soft wassails for legion(predicate) age, and has also been all(prenominal) red-hot(prenominal)(a)s biggest competitor. century was created in 1885 by illusion Stith Pemberton, a pharmacist, and was initially make as a tonic (Smith, 2012). In the beginning, s now had cocaine in it, which was to counterbalance embossment and also relieve oneself consumers addicted to the drink. In 1904, the Food and Drug Administration eliminated the custom of cocaine, a key ingredient, in the joined States, so ampere-second pertinacious to watch its name and endorse the beverage by aggressive advertising (Smith, 2012). Thirteen years after the creation of coke, in 1898, Caleb Bradham, a pharmacist, created a beverage named Brads Drink (later switchd to Pepsi), and was reversals chief(prenominal) competitor (Smith, 2012). some(prenominal)(prenominal) companies stressed on advertising, but they took various approaches. These diametrical approaches that each keep company uses, also reflects the differences of their collective finiss. Coke and Pepsi hand been competing with one a nonher since the beginning, and this contest seems to beget pushed both companies to remain at the top of their market.Corporate culture is delimitate as an organizations organisation of principles, beliefs, and values (Boone & Kurtz, 2012). Cokes corporate culture focuses on seven marrow values, which are drawing cardship, passion, integrity, collaboration, diversity, quality, and accountability (Coca-Cola, 2013). Coke focuses on their employees and their carry in order to keep the promise to refresh the world in mind, body, and spirit, and inspire moments of optimism to create value and make a difference (Coca-Cola, 2013). On the another(prenominal) hand, Pepsis corporate culture focuses on performing with a purpose. Performing with a purpose means dazzling virginfangled trails, never settling for second best, bring home the bacon and celebrating together, and doing something larger (PepsiCo, 2012). Pepsi also focuses on regimen by addressing health c erstrns. The difference betwixt these 2 companies is that Coke seems to focus to a greater extent than on their employees, where as Pepsi, seems to focus more on staying ahead of the competition by always coming up with hot trends or products.Pepsis culture has benefitted Coke by focusing on healthy alternatives rather poop products. In 2006, when Indra Nooyi took oer as CEO, she decided not to slip away to battle with Coke. Instead of the skinny products, Nooyi decided to focus on water, juices, teas, and sports drinks. Since Pepsi began focusing on healthier alternatives, of all soft drinks, Coke has controlled 41.9 percent of the market compared to Pepsis 29 percent (DAltorio, 2013). On the other hand, Cokes focus on their rat has benefitted Pepsis decision to not focus mainly on poop products. Coke clearly commands the cola war between the two companies, but Pepsi has won the revenue battle, bringing in 38 percent more revenue than Coke in 2011 (Russell, 2012). Pepsi has expanded the company by scratch the Quaker Oats, Gatorade, and Tropicana divisions.By opening up these divisions, Pepsis culture is to reach $30 billion in revenue by 2020 (DAltorio, 2013). Cokes focus on the brand, allowed the company to clearly control the cola market, but by limiting the company to soft drinks, Coke has allowed Pepsi to tap into other markets and gain more revenue. Another conk out of Pepsis culture that has benefited Coke was doing something bigger. Pepsi has been know to use celebrities to promote their products, but on that point have been instances where these promotions have backfired. The most fresh of these mishaps was in 2002 when Pepsi pulled an ad featuring the rapper Ludacris. bloom OReilly called for a boycott of Pepsi because he felt the company used an scrofulous rapper as a illustration (Russell, 2012). After the controversy, Pepsi committed to paying $3 million dollars to the Ludacris Foundation (Russell, 2012). With a popular rapper, such as Ludacris, who has millions of fans, this controversy created the gamble of Pepsi losing millions of consumers, which could have switched over to the competition, Coke.In the future, the disjoint of Cokes corporate culture that will probably change is their attractionship. Companies change draws often, especially when the current leader is not performing to the standards that the company expects. In order to continue to thrive, Coke has to be sure that they put leaders in place who understand the companys vision. They mustiness be able to disengage those visions and continue to move the company ship in its market. Coke has been a leader in the cola market for many a(prenominal) years and as a new leader, it will have to be the goal of that leader to ensure that Coke dust at the top of the market or Coke will have to find a new leader. If Coke perpetually has to change leadership, then it will arrogate the company. Finding a great leader is not an easy task, but once that leader is found it is up to him/her to efficaciously lead the company into the future and not ruin everything that has been built before they came along.Pepsis believes in blazing new trails, and thusly far it has worked for them. In the future, Pepsi must be careful that by blazing new trails they do not forget what has allowed their victor over the years. Although the new trails that they tapped into in the last(prenominal) have worked, there is no arrogate in charge that it will continue to work in the past. There have been companies, like Coke, that have tried new products (New Coke) that did not work. Pepsi has had achievement with tapping into new markets, but the company must be careful that they stick with what has worked for them so that they do not tarnish the brand that they have worked so hard to establish. The different markets (water, juices, teas, and sports drinks) that have been tapped into has brought Pepsi much succeeder, and instead of blazing new trails, Pepsi needs to focus on making their current product lines bigger and better. Tapping into other markets that they are not already a part of could possibly take away from the product lines that they already have in place.Conclusion Coke and Pepsi are the top cola and soft drink companies and each others biggest competitor. Both companies have established themselves using different methods, but they both have had success with these methods. Coke has clearly won the competition between the two when it comes to the individual cola lines, but when it comes to overall revenue Pepsi has won the battle of revenue. Although both companies have made mistakes over the years, both have proceed to be successful. Coke has stuck with what has worked for them throughout the years, which is the cola and soft drink market. Pe psi on the other hand, tried different markets, and was very successful. These two companies will continue to be rivals from now until the end of time because they are both at the top and continue to fight to make sure that is where they stay.