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Assignment 2: Competitive Strategies
Fights between Pepsi and Coca-Cola will never stop. In the process of fighting, each company helps each other to survive, and departure from the scene of one of the implacable opponents will inevitably lead to the fact that the second will have to make room from the onslaught of smaller, but the arrogant competitors. Once upon a time, there was an opinion that the two companies belong to one person - an unknown millionaire who made this battle, a grand spectacle, prolonged in time and conquer space in order to maintain interest to its drinks. It should be considered the history of each company.
Brand Coca-Cola is probably one of the most famous brands in the world. However, the popularity of the drink under this brand was not always like today, it increased during the business development and application of new advertising and marketing moves. Moreover, it is hard to name another such brand that would be so much strong due to its advertising and marketing inventions.
Pepsi-Cola was invented 12 years later by an officer Caleb Bredemom. Its composition is different from the Coca-Cola by the absence of cocaine, which was replaced by pepsin. The beginning of the corporations confrontation began in 1938, when Coca-Cola filed the first lawsuit against Pepsi Co for the illegal use of the word cola. However, neither it nor the subsequent lawsuits brought any results. Gradually, the corporation began to divide spheres of interest and buy the companies. For example, Pepsi bought Pizza Hat and Tasso Bell while Coca-Cola bought Columbia Pictures. It should be also noted that the Coca-Cola Company only once conceded the title to Pepsi - in the 70s, all over America so-called blind tests on the taste have been carried out and most people preferred Pepsi. Therefore, president of Coca-Cola Company immediately decided to change the recipe and, as a result, it returned its leading position less than a year.
The PepsiCo produces soft drinks, juices, snacks and other food products under the brands of Pepsi-Cola, Mountain Dew, Quaker Oats, Gatorade, Lays, Cheetos, Mirinda, SoBe, Tropicana, as well as under local brands. The main business of the Coca-Cola Company is a production of non-alcoholic drinks. The company sells concentrates, syrups and beverages in more than 200 countries. Concentrates and syrups are sold to companies, which directly produce beverages.
Additionally, it should be mentioned that the Coca-Colas organizational structure can be defined as an international division structure since the Coca-Cola is a large international company with a lot of divisions and sub-divisions worldwide. For this reason, such organizational structure is efficient for this company since it helps organize its business and activity in the best possible way. The divisional organizational structure helps Coca-Cola to stimulate its effectiveness and labor productivity.
Coca-Cola is the drink of joy and happiness. This is how this drink is positioned in the advertisement. Love in the Coca-Cola Company is not limited only by the love to brands, but also to people and company. The company seeks to extend its mission to the world. This is reflected in the programs for the protection of the environment, helping children needed special care and attention, raising a healthy way of life and development of sports. They try to be an example not only for employees, but also for the whole society. This is the main difference between corporate cultures of these two companies, which is reflected in their missions. The Coca-Cola Companys mission is to quench the thirst, collaborate with consumers, and improve the well-being of shareholders and lives of communities, in which the company operates. On the other hand, the PepsiCos mission is to ensure that in every corner of the world people would be happy to consume the companys products. Therefore, the Coca-Cola Companys mission is focused not only on satisfying the customers needs, but also on improving the lives of communities. That is why the Coca-Cola Companys mission is more suitable for the companys further development.
Therefore, the Coca-Cola Companys corporate culture has at least three advantages in comparison with the PepsiCos culture. First of all, the company is focused on setting long-term relations with its clients. It is a very positive aspect of the companys activity, which will help to increase its effectiveness and total sales. Secondly, the companys corporate culture is organized on the basis of improving the lives of its shareholders and communities. That is why the company is focused not only on satisfying its clients needs, but also on the needs of its shareholders and communities.
Additionally, the PepsiCo corporate culture has also its advantages, since the company is focused on satisfying its customers needs by producing the qualitative products. Also, the company gives much attention to its employees, their skills, qualification, and ethical behavior. The company developed a dress code for the companys employees, since in accordance with the PepsiCo corporate culture, employees appearance is a very important thing of the companys image. Additionally, the code of professional ethics was developed in order to improve its business image. Another advantage of the companys corporate culture is orientation on the product quality. The PepsiCo tries to improve the quality of produced goods constantly.
To conclude, it should be noted that each company has its own corporate culture with special advantages in comparison with another company. The Coca-Cola Company should be more focused on increasing its products, since there were a lot of rumors about the negative impact of the companys products. On the other hand, the PepsiCo should find a golden mean between orientation on products quality and improving the lives of its communities.