Coke vs Pepsi strategy Essay

speed of light v. Pepsi 5 Forces AnalysisIndustry concentrate producesHigh intensity (depends on footing/advertising cost/ high number of substitutes(low calorie suck ups/no carb drinks/ not carbonated drinks like chromatic succus) Pepsi products /Coke productsNew Entrants (barriers/rivalry)High Intensity-Brand recognition dominant market/ patents on style and colors net profit relationships & high cost of entryestablished such as distribution, warehouse, bottlers, and shelf-location high marketing costsCoke dominance on international market makes it hard for Pepsi to enter international markets where Coke is dominant (Mexico) Suppliers (Bargaining military force of Supplier)Medium intensity- Coke and Pepsi can and do renegotiate contracts with bottlers on prices, marketing, distribution territories, and etc. High intensity- for newborn entrants because the bottlers determine price of product (price takers), shelf- place is determined by retailer and less price bank discount control. There is a small number of important suppliers since Coke and Pepsi supported suppliers to buy other little suppliers to keep up with their needs. Buyers (Bargaining Power of Buyers)High Intensity- due to the high number of substitutes, health concerns, and few blusher buyers (fountain outlets/vending machines) E.g.) Coke and Pepsi battled for the right to sign a contract with fast food restaurants like Burger King. Substitutes ( flagellum of substitutes)Medium Intensity- high number of substitutes(low calorie drinks/no carb drinks/ not carbonated drinks like Orange juice /ice tea/ flavored water/etc.Low intensity competition among other pop drink because its based on brand recognition.