The Profitable Fizz: A Critical View of Competition in the Soft Drink Industry
24 Pages Posted: 7 Mar 2008
Date Written: January 1, 2008
Abstract
No other country has as high of a soft drink consumption rate as the U.S., however, many international areas have been targeted as potential areas for expansion. The strategy of overseas expansion involves similar use of the differentiation and consolidation methods that are used in the U.S., but are often geared toward specific foreign populations, e.g. PepsiCo's introduction of a unique Guava-Flavored Slice in India. Selling soft drinks internationally is advantageous to soft beverage companies because they are able to sell their products overseas at a lower price since local bottling companies produce the drinks. The major competitors, therefore, are essentially responsible for selling brand names and the image that goes with them.
Keywords: Beverage, Pepsico, Coca Cola, strategy, competition
JEL Classification: L11, D1, M14
Suggested Citation: Suggested Citation