Coke vs. Pepsi

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Coca-Cola vs. PepsiCo. Coca-Cola and Pepsi are two of the top manufacturers of carbonated soft drinks in the world. Both companies are highly profitable in the soft drink/beverage industry. However, there is a marked distinction between the two companies to start with. While Coca-Cola completely operates in a beverages (for example Coke, Sprite, Minute Maid, Dasani), Pepsi is more diversified in its products they sale. Pepsi has not restricted its brands from being beverages only. The competition between Coca-Cola and Pepsi is intense, but both companies have successfully avoided price competition in order to maintain high profit margin. Instead, both companies have focused on improving brand images through effective advertising efforts and marketing campaigns, and reducing costs and expenses by improving quality of operations and management. According to Bloomberg Business Week, Coca-Cola remains the best globally recognized brand across all industries for years, while Pepsi’s brand ranked number 25 in the year 2008. Thus, Coca-Cola is able to charge premiums for its syrup concentrates due to its larger market shares and better brand name recognition. In order to compete against Coca-Cola and increase revenue, Pepsi has diversified its businesses as I stated above into other markets such as snacks, chips, and breakfast foods, with its core business focusing on soft drinks. Undoubtedly, the company’s strongest and most identifiable brand is indeed Pepsi but it has a certain advantage over Coca-Cola since it is more diversified. On April 9, 2009, Coca-Cola Company reported cash and cash equivalent to be $6,816,000,000 and on December 26, 2009, Pepsi reported cash and cash equivalent to be $3,943,000,000. Coca-Cola has made almost double the cash and cash equivalent than Pepsi. Cash equivalent from both companies generally including their time deposits and other

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