Josef Maier Maier. 1
06 June 2010
Coke V.S. Pepsi
Before the turn of the century, potential soft drinks were being formulated by southern pharmacists, with the intent of relieving indigestion. From the first decade of the twentieth century until the 1960s, the competition in the beverage industry was primarily between equals. Coca-Cola fought it out with Pepsi Cola for market share, and juice or coffee companies competed with each other.
In the 1960s, the competitive edge in the beverage industry went to Coca Cola, with its purchase of Minute Maid in 1960, the introduction of Sprite in 1961, and Tab in 1963. Although Pepsi doesn’t fall far behind, statistical findings showing personal preference, product comparison, market shares and net income will clearly reveal coca-cola as the superior conglomerate. Income plays a huge role in a large corporation’s success. From the year 2002 up till 2008 both coca-cola and Pepsi made a significant amount of net income. In 2002 pepsi brought in 9,216 million dollars, in the following years Pepsi slowly increased its profit. In 2008 Pepsi was doing well a comfortable rate of 13,796 million dollars. On the other end of the cola spectrum coke was pulling in excellent net income as well, in 2002 coca-cola earned, 16,058 million dollars and only progressed in the money making department. By 2008 the coca-cola corporation was banking a staggering 21,807 million dollars. Comparing net incomes definitely falls back on either corporation’s product line. Coca-cola sticks to beverage sales, while pepsi focuses on beverages as well as food sales. The Pepsi Corporation owns numerous brands including mountain dew, amp energy drink, mug root beer, aquifina, different Tropicana brands as well as Gatorade brands. Pepsi has also been smart enough to purchase food products to go along with their many drink selections. Pepsis innovation into the snack industry is only beginning,...