Coca-Cola vs. Pepsi: A Battle of Business Models
Coca-Cola and Pepsi are two of the most iconic brands in history, both of which were born in the early 1900s. Though they’re both carbonated soft drinks, their business models are very different. Coca-Cola owns their bottling plants, while PepsiCo doesn’t—Pepsi buys syrup from its suppliers and sells it to bottlers in North America, who then bottle and distribute the soda to retailers on their own. By learning how the two companies use their business models to benefit themselves and their customers, you can learn how to improve your own business or start a new one.
Coke and Pepsi, similar in many ways
Coca-Cola and Pepsi are both global household names, with strong distribution channels in most countries throughout North America, Europe, and Asia. It’s easy to see why these two colas dominate worldwide sales year after year – they offer a similar style of soda (fizzy), a similar style of product placement (parties and outdoor events), and often have very similar or matching prices on their different products. In fact, both companies even sell their sodas at McDonald’s restaurants worldwide! The biggest difference between Coke and Pepsi is their business models – while Coca-Cola has been pursuing growth through acquisitions in recent years, Pepsi has been focusing more on growing its own business organically.
Coca-Cola and Pepsi, different in many ways
As you know, both brands are major players in soft drinks and maintain a global presence in terms of their reach and growth potential. But while they appear to be competing with each other at a corporate level, when it comes to choosing between Coke and Pepsi, consumers have very different preferences based on brand loyalty, age demographics, health considerations and even food pairings. Coca-Cola vs. Pepsi is more a battle of business models than competition between two colas—and knowing what each company brings to its offerings makes it much easier for you to decide which drink better suits your needs (or tastes).
How do the two compete against each other?
Pepsi is a privately held corporation which does not publicly release financial information regarding their sales and profits. In contrast, Coca-Cola releases reports on their net worth that is updated regularly. It is reported that Pepsi net worth $17 billion less than Coca-Cola’s, resulting in Coca-Cola being valued at around $77 billion compared to Pepsi’s value of around $60 billion at present time.
Conclusions on Coca-Cola vs. Pepsi
Both Coca-Cola and Pepsi are two of the top soda companies in America, making products that consumers buy on a regular basis with little competition between them. However, when it comes to business models, they couldn’t be more different from one another. That difference can be seen in how each company deals with competitors and manufactures its product, among other details about their practices. What works for one may not work for another, but if you’re hoping to avoid committing your own Pepsi or Coke blunder , you’ll want to read up on these key differences so you don’t follow down a path that’s right for your competitor but completely wrong for you. The corporate culture plays a big role in shaping their philosophies–and yours should do likewise.