Business Strategy of Coca-Cola and Pepsi
An Evaluation of the Business Strategy of Coca-Cola and Pepsi: Two Competing Companies within the Beverage Industry.
Discipline: Strategic Management
Theme: An analysis of the corporate strategy of two direct competitors.
Project statement
Background
Coca-Cola and Pepsi are two leading global consumer brands in the beverage industry (O’Brien, 2015). They are intense competitors and battle to be market leaders. Coca-Cola was pioneered in 1886 (coca-colacompany.com 2018) and Pepsi in 1965 (Pepsico 2017). Coca-Cola produces beverages, whereas Pepsi’s product line incorporates food and snack.
Project topic
A challenge affecting both organisations is changing market preferences. Globally, sales for Coca-Cola and Pepsi have been declining since 2012, mainly because investors are shifting preferences to heathier lifestyles by consuming health conscious beverages (O’Brien 2015). Change in buyer preferences drastically affect Coca-Cola more than its rival as Pepsi has alternative products to rely on to ensure its sustainability.
The mission statement of both organisations is centred on the people they serve. “To refresh the world, to inspire moments of optimism and happiness, to create value and make a difference” is Cola-Cola’s mission, (cola-colacompany.com 2018). Pepsi’s mission is, “to provide customers around the world with delicious, affordable, convenient and complementary foods and beverages from wholesome breakfasts to heathy and fun daytime snacks and beverages to evening treats” (Lombardo 2017).
Both vision statements focus on business performance, growth, and sustainability. Pepsi’s vision is “to deliver top-tier financial performance over the long term by integrating sustainability into our business strategy, leaving a positive imprint on society and the environment” (Lombardo 2017). Coca-Cola’s vision is a framework designed to guide its business operations in order to accomplish sustainability and continuous growth (cola-colacompany.com 2018).
Business Strategy of Coca-Cola and Pepsi Purpose of research
This research aims to analyse the business strategy of Coca-Cola and Pepsi and provide possible strategic changes to their current business approaches. This will allow the organisations to strategically align their vision and mission with what is delivered to cope with the changes in market preferences. Subsequently, it will improve the market share for the organisations. Both companies will be analysed via comparing and contrasting to identify what can be used as a benchmark for development and sustainability in the industry.
Literature review
The theory of strategic management and the following concepts are relevant to this research:
• Crafting effective business strategies to improve market share
• Charting a company’s direction
• The importance of strategy and its alignment to a company’s vision and mission
• Changes in consumer preferences
Business Strategy of Coca-Cola and Pepsi Research method
The project will use a case study method that will focus on the effectiveness of the business strategy of the companies. Secondary data will be obtained from the official websites of coca-colacompany.com (2018) and Pepsi (2017) as well as industry reports such as Industry at a Glance (IBIS World 2018) and environment reports such as Soft Drink Consumption (IBIS World 2018). Further data will be gathered from Coca-Cola vs. Pepsi: Comparing Sales, Earnings & More (O’Brien 2015). The findings will be analysed which will be able to proffer recommendations
The findings of the data will analyse declining sales measured in percentage, market share, and growth. It will also examine the elements of the business strategies. This data will be used to identify performance trends and changes. The outcomes will be analysed which will be able to proffer recommendations to guide both companies to align their business strategy to their vision and mission.
Business Strategy of Coca-Cola and Pepsi References
Coca-Cola, 2018, viewed on 15 January 2018, http://www.coca-colacompany.com/
Lombardo, J 2017, Pepsico’s vision statement & mission statement analysis, viewed on 17 January 2018, http://panmore.com/pepsico-vision-statement-mission-statement-analysis
O’Brien, S 2015, Coca Cola vs. Pepsi: comparing sales, earnings and more, viewed on 17 January 2018,
http://www.dividend.com/how-to-invest/7-charts-that-compare-coca-cola-and-pepsico-ko-pep/
Pepsi, 2017, viewed on 17 January 2018,
Pepsico 2017, viewed on 17 January 2018,
Business Strategy of Coca-Cola and Pepsi