Best known for its flagship Coca-Cola soft drink, the company offers nearly brands in over countries or territories and claims to serve 1.
KO and PepsiCo, Inc. PEP are very similar businesses in terms of industry, ideal consumers and flagship products. Both Coca-Cola and PepsiCo are global leaders in the beverage industry, offering consumers hundreds of beverage brands.
In addition, both companies offer ancillary products such as consumer packaged goods. On the surface, Coca-Cola and PepsiCo have very similar business models. As potential investors dig deeper, however, they find key differences and key similarities between the two business models that make the companies what they are as of The following are four key comparisons between Coca-Cola and PepsiCo's business model that make the two companies fierce competitors and unique businesses.
Diversified Business Model PepsiCo is a company known for a highly diversified product portfolioboth within the beverage industry and in other industries such as the consumer packaged goods industry. In contrast, Coca-Cola only focuses on a diversified product portfolio within the beverage industry and has few products outside of that industry.
In a scenario where the beverage industry declines in overall revenue, PepsiCo is positioned to take advantage of the situation, while Coca-Cola may falter. However, Coca-Cola has more focus within the beverage industry, allowing it to make key investments and communicate key messaging with consumers.
Complementary Products With PepsiCo's diversified business model, the company has been able to acquire or create complementary products in both the food industry and the beverage industry. According to Information Resources, Inc.
Even though Coca-Cola may have an advantage with a more focused business model, PepsiCo created a scenario where one product the company owns may induce a consumer to purchase a second product the company also owns.
In contrast, Coca-Cola has made efforts to dominate the beverage industry almost exclusively and shied away from the cross-promotion of multiple products in multiple industries.
There are not many new or emerging markets that remain untapped for either company. However, both companies have made a push into the energy drink category. This push highlights the fact that sales volume for Diet Pepsi and Diet Coke has declined steadily over the past 10 years, according to Time Magazine.
What is interesting to note is that Time Magazine also reports that the energy drink segment of the beverage industry has captured year-over-year growth over the past 10 years. Keeping with the theme of diversification and product complements, Coca-Cola bought a large stake in Monster Energy inand PepsiCo decided to start its own energy drink: Efficient Business Operations With both companies facing market saturation, Coca-Cola and PepsiCo have made strong commitments to more efficient operations in This allows both companies to take advantage of the few new and emerging markets left.
Since every large market has been fully tapped by the beverage industry, the remaining smaller markets require efficient operations to turn a profit and make a lucrative investment, since the sales volume felt in countries such as the U.
These more efficient operations help both companies increase the price per share given it should result in higher earnings per shareor EPS, even if sales remain flat. Trading Center Want to learn how to invest?
Get a free 10 week email series that will teach you how to start investing. Delivered twice a week, straight to your inbox.OBJECTIVES OF THE STUDY To identify the comparative financial strengths of Pepsi and Coca Cola India Ltd. Through the Net Profit Ratio and other profitability ratio, understand the financial position of the company.
To know the liquidity position of the company, with the help of Current ratio. To find out the utility of financial ratio in.
include the Coca-Cola Company, PepsiCo, and Cadbury Schweppes. According to the Coca- Cola annual report (), it has the most soft drink sales with $22 billion. Complete the following deliverables as a team: 1. The Coca-Cola/PepsiCo Comparative Analysis Case on p. Your responses should be approximately one to two sentences for each segment (a, b, c,e). Issuu is a digital publishing platform that makes it simple to publish magazines, catalogs, newspapers, books, and more online. Easily share your publications and get them in front of Issuu’s.
(A) Case Solution,Coca-Cola Co. (A) Case Analysis, Coca-Cola Co. (A) Case Study Solution, In order to fully assess the profitability of Coca-Cola, the financial risks and operational risks, Jane Wilson, a security analyst, examines the preparati. Issuu is a digital publishing platform that makes it simple to publish magazines, catalogs, newspapers, books, and more online.
Easily share your publications and get them in front of Issuu’s.
For Pepsi Co, Inc. and The Coca-Cola Companies the below vertical and horizontal analysis along with selected ratios provide details on each company to allow comparison between them. Pepsi Co, Inc. shows a great deal of assets and property ownership while The Coca-Cola Companies net revenue is lower their net income is higher.
Mar 23, · Comparative Analysis Case The Coca-Cola Company and PepsiCo, Inc. The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. A blind or blinded-experiment is an experiment in which information about the test is masked (kept) from the participant, to reduce or eliminate bias, until after a trial outcome is known.
It is understood that bias may be intentional or subconscious, thus no dishonesty is implied by blinding. If both tester and subject are blinded, the trial is called a double-blind .