Accounting - Coca-Cola Analysis

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Financial Analysis College ACC 280 Coca Cola and PepsiCo are both instantly recognizable companies around the world. Products from both companies are some of the most well-know products throughout most any country. Both companies have been creating, manufacturing, and distributing soft drinks and other products such as bottled water for years, and as the two companies have been competing customers in a very competitive market for most of their existence. Many refer to the rivalry between Coca-Cola and Pepsi as the Cola Wars. In the market of soft drinks there are many companies all competing for the same business, some are small local companies and some are large multinational companies but the primary competitor of PepsiCo, Inc is Coca-Cola, and vice versa. The operations of both companies extend well beyond the borders of the United States. Coca-Cola and PepsiCo, Inc both market to consumers around the globe, and of virtually all income segments. Each company produces similar products and services (Coca Cola Company, 2010). It is common knowledge that when a company makes the decision to venture beyond its domestic territory many challenges await, primarily the production and distribution of the merchandise becomes a concern. Will it be less expensive to manufacture it domestically and ship the product to the new markets, or is it less expensive to open a distribution facility in the new market. Both PepsiCo and Coca-Cola own and operate manufacturing facilities in numerous countries throughout the world. Each company closely watches the other and is typically quick to launch similar advertising campaigns and promotions to market their existing products or invent new products to meet the ever-changing demands of the worldwide consumer base to which they each market (Wikipedia, 2010). Because each of the companies is multinational, they frequently encounter

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