Industry competition has given rise to extensive market efforts by companies to sustain their position by gaining an edge over competitors. Industrial trend helps company to set standards and design a strategy for the accomplishment of goals. Multiple set of strategies are devised in accordance with the company vision and goal depicting its relationship with the set of actions taken to achieve goals. Market growth shows the ability of a firm to increase its profit in long term whereas it requires firms to extensively invest in market research to understand consumer behavior and demand over a period of time. The beverage industry has shown a remarkable growth in last decade, hence giving an opportunity to existing market players to focus their strategies on market penetration.
Coca Cola and Pepsi are two biggest rivals in the beverage industry that together hold more than 70% of the market shares worldwide. Recent advances in technology and shaping consumer needs have enabled the companies to offer a range of soft drink and beverage products. Both companies indirectly affect the market position of the other through its competitive strategies adopted to capture market share by enormous product offering. Specifying the strategic impact of the competitor's policy highlights the reactive response by other competitors in industry.
Coca Cola being a major shareholder in the beverage market industry is being used as a benchmark by other market players. PepsiCo also formulates its strategic set of actions in accordance to the approach adopted by Coca Cola. Ultimately, it also provides PepsiCo the data to design its strategies effectively. Interdependent effect has been observed on the growth of both companies due to their competitive strategic planning for the market share gain.
[...] Strategic alliances by business partners benefit the company to increase its market approach based on optimized use of services whereas at places it requires business entity to financial assist and provide technical support to business partner. Thus business growth is based on the strategies used as active or reactive approach to industry to get competitive advantage and sustain position of company in market. References Coca-Cola Company. (2009). Behind the Brand. The Coca Cola Company. Retrieved November from http://www.thecoca- colacompany.com/ourcompany/ar Hewett, Kelly. Jayachandran, Satish and Kaufman, [...]
[...] Coca Cola and Pepsi adjoined their marketing activities with bottlers to ensure effective flow of information inclusive of advertising and marketing research. This in association leads to financial and operational support of bottlers serving the immediate purpose of company. It is of vital importance for company to assess its bottler capability and providing financial assistance including quality based approach to support bottlers functioning at all levels. Quality standards specification by government requires each independent company to provide product meeting or exceeding the exact specifications. [...]
[...] Company gains opportunity to financially stable its position that offers it advantage to gain competitive advantage through technology advancement, increased employee involvement in the work, supportive activities for associated bottlers in specific regions, and innovative product offering such as Diet Pepsi by PepsiCo which enabled it to lead the market for many years in consideration of Coca Cola Company's product offering. Therefore, strategies adopted by company defines its ability and effectiveness to serve the purpose of growth with market edge either in terms of product offering, product cost/quality, and functional tactics adopted by company to achieve short term objectives. [...]
[...] Generic and Grand strategies are totally dependant as the reactive response en route for competitors strategy as highlighted in case launch of Diet Coke by Coca Cola against brand Diet Pepsi to capture market share which Pepsi is catering. Thus it is solely based on the firm's awareness and research level to identify the generic strategies which firm can use to exceed the market position in particular segment. Pepsi in 1974 initiated a movement against Coca Cola brands to signify the people attitude and preference more for brand products of Pepsi (Yoffie, 2004). [...]
[...] Pepsi and Coca Cola both act as concentrate producers whereas market implications synchronized the need of respective related entities involvement in business concern, hence formulation of strategic approach towards the end user involves the business fragmentation to maximize the return of directly related business entities. This leads to internal analysis of the firm and external environment that affects the company position. Vision formation requires the internal analysis of the firm in order to define available resources to the firm in terms of human resource, financial resource, production capacity and extensive effort capability to reach wide markets. [...]
APA Style referenceFor your bibliography
Online readingwith our online reader
Content validatedby our reading committee