Coca-Cola Are a Good Business

Col a Wars

1. a) Is this a good business?

Cola beverages are a good business because it has been converted in a duopoly by Coke and Pepsi. In this industry both firms have been able to expand from the national to the international level. The total international consumption of cola beverages during the 1990s was 16,115,960 gallons, and U.S consumption was 8,160,000 gallons. Coke and Pepsi made different acquisitions in other beverages as well as the food industry. Therefore this proves that the business for cola beverages is a good business and allowed Pepsi and Coke to expand in the market to other industries

b) If so, for whom?

This Business has been most profitable for Coke due to the uniqueness of the product as it is seemed by consumers. The acquisition of bottler companies and ownership of mega facilities allowed Coke to make profits of 59% while Pepsi had only 27% during the early 1990s. Coca Cola reached 80% of international profits and Pepsi makes 15% of international profits. Success in the beverage industry is demonstrated by maintaining customer demand by keeping the original formula of Coke. The dominance of the industry has been perfectly achieved by making good use of advertising and setting a fixed geographical are for business.

Somehow, Pepsi stands after Coke in the beverage industry in regards to Profits. During the 1990’s it had a boost in profits due to changes in image and the concentration in attracting young consumers. The marketing techniques and Pepsi challenge helped the company to bring profits back to an average of 47%. Pepsi has not been able to achieve big profits internationally, however; it has been able to adapt to fit customer’s wants) in every geographical are it has set its business. Both Firms have achieved uniqueness and have taken charged of the beverage market by taking control of it.

2) Where’s the money being made?

The money is being made nationally and internationally. This is through the food industry, grocery stores, retail