Management Report of the Comparison between Coca-Cola and PepsiCo

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Current Strategic and Financial Analysis Introduction: A SWOT analysis for Coke and Pepsi will cover the following: The company’s strengths and competitive advantages over the other; The weaknesses of external and internal factors leading towards a decline in revenue sales; Opportunities to buy into and make risky business decisions of either entering new markets or acquiring another company; Threats to the market and legal cases that each company faces. Coca-Cola Strengths:

• Today Coca-Cola controls 42% of the soft drink market. The “Coca-Cola” logo is known world-wide selling more soft-drink products than any other producer.

• Coca-Cola is valued at over 67 billion dollars. The current gross profit margin is 65.7% which has increased since last quarter.

• Coca-Cola is a drink driven market selling over 230 brands of soft drinks, energy drinks, juices, and water.

• Most of Coke’s sales come from the international market rather than the US.

• The company makes high profits every year and heavily markets their product through commercials, billboard ads, and celebrity testimony. Its branding creates customer appreciation and therefore a higher respectability for the actions that the company does for non-profit organizations and worthy causes.

• It has ownership in fast food restaurants and distributes to event centers creating a broader distribution market.

Weakness:

• Pepsi has the competitive advantage for multiple product related diversification in snacks and juices.

• Current trends are showing that custom...

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...1). Salary.com. Retrieved April 30, 2014, from http://www1.salary.com/Executive-Salaries-Search-Result.html?q=pepsico

Why Coca-Cola (KO) Shares Are Falling Today. (2014, March 31). The Street. Retrieved April 30, 2014, from http://www.thestreet.com/story/12577819/1/why-coca-cola-ko-shares-are-falling-today.html

PepsiCo Announces Plans for $5 Billion Investment in Mexico. (2014, January 24). The Wall Street Journal. Retrieved April 30, 2014, from http://online.wsj.com/article/PR-CO-20140124-907542.html

PRNewswire Environmental Protection Agency Recognizes PepsiCo for Energy Efficiency Excellence. (2014, April 3). Article. Retrieved April 30, 2014, from http://www.pepsico.com/PressRelease/Environmental-Protection-Agency-Recognizes-PepsiCo-for-Energy-Efficiency-Excelle04032014.html

http://www.strategicmanagementinsight.com/swot-analyses/pepsico-swot-analysis.html

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