Analysis of Competitors within the Softdrink Industry

C.Competitive Environment Analysis Coca-Cola and Pepsi are the two major industry players in the soft drink industry, they account for a total of more than 60 percent and more than 70 percent of the U.S. and world markets, respectively. (Refer to Table 1 below) Table 1 World Soft Drink Market Shares (%) Company199519941993 Coca-Cola Co.47.245.644.8 PepsiCo Inc.22.121.821.7 Cadbury Schweppes7.98.07.8 Other 22.824.633.5 Source: Beverage Marketing Corporation, c.f. Beverage World 3/15/97, p. 65. Coca-Cola has long been a part of American culture …

…unquestionably would turn this into an opportunity to extend its product lines. Both companies would instantly diversify into this segment of the soft drink industry by developing their own non-cola and alternative beverages. Having vast resources--R&D skills, manufacturing efficiencies, financial strength, marketing and distribution networks, at their realm; it is expected that both companies would be potential competitors, and given the right machineries, could even become leaders of the non-cola market as well.