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For example, price wars resulted in weak brand loyalty and eroded margins for both companies in the 1980s.
Substitutes: Through the early 1960s, soft drinks were synonymous with “colas” for consumers. Over time there were other drinks like bottled water and teas that became more popular as consumers became more health conscious. Coke and Pepsi responded by expanding their offerings, through alliances (e.g. Coke and Nestea), acquisition (e.g. Coke and Minute Maid), and internal product innovation (e.g. Pepsi creating Orange Slice), capturing the value substitutes internally. Bottlers were able to overcome many operational challenges through consolidation to achieve economies of scale...
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Common topics in this essay:
- Coke And Pepsi
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