Investment Decision: Coca-Cola Vs. Pepsi

Investment Decision: Coca-Cola Vs. Pepsi Assignment example
Finance & Accounting
Pages 15 (3765 words)
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Pepsi and Coca-Cola are the two leading beverrage and soft drink companies globally. A report by the consumer survey in 2011 indicated that Pepsi and Coke are the most recognized and popular beverage brands.


Being multination, Pepsi and Coca-Cola operates in all the five continents of the world. Coca-Cola uses a marketing phrase “Coke side of life” (Byrne, 2010) while Pepsi on the other hand uses “Hot stuff” and “Pepsi is in sync” (Pepsi-Cola, 2006) in their internet sites to popularize their brands. As evidenced in the product market, beverage and soft drink products from these companies make-up for over 80 percent of the global beverage industry. However, as expected, Pepsi and Coca-Cola are fierce business rivals with each company fighting for market dominance. Ironically, both Coke and Pepsi have a common origin as both companies were founded in the nineteenth century as a result of pharmaceutical innovation experience. Pepsi was formed in 1898 by a drugstore and pharmacist in North Carolina by the name Caleb Bradham. Coke was created by John Pemberton (an Atlanta Pharmacist) in the year 1886. However, John Pemberton did not live long to see the success of his innovation and enjoy the fruits of his creativity as he died only two years after forming Coke (Byrne, 2010). Little did these two pharmacists know that their innovativeness and creativity would spark decades of rivalry while competing for the market share. ...
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