Coca-Cola vs. Pepsi’s Job Models: An Overview
Coca-Cola Co. (KO) and PepsiCo, Inc. (PEP) are very similar businesses in terms of industry, ideal consumers, and flagship produces. Both Coca-Cola and PepsiCo are global leaders in the beverage industry, offering consumers hundreds of beverage brands. In appendage, both companies offer ancillary products such as consumer packaged goods.
On the surface, Coca-Cola and PepsiCo fool similar business models. As potential investors dig deeper, however, they find key differences and key similarities between the two profession models that make the companies what they are as of 2020. The following are a few comparisons between Coca-Cola and PepsiCo’s province model that make the two companies fierce competitors and unique businesses.
Key Takeaways
- PepsiCo, Inc., owns roughly 23 unique brands, including popular food brands, like Quaker Oats as well as many brands of drinks.
- Various than half of PepsiCo’s global revenue comes from snack and food products.
- The Coca-Cola Co., on the other around, primarily owns beverage brands of varying types, including Honest Tea, and Fairlife ultra-filtered milk.
PepsiCo
PepsiCo is a crowd known for a highly diversified product portfolio, both within the beverage industry and in other industries such as the consumer packed goods industry. In contrast, Coca-Cola only focuses on a diversified product portfolio within the beverage industry and has few effects outside of that industry. This means PepsiCo’s products in the snack food category account for more than 50% of its role revenue, while a majority of Coca-Cola’s revenue comes directly from the 100-plus beverage products it owns.
With PepsiCo’s break up business model, the company has been able to acquire or create complementary products in both the food industry and the beverage exertion.
Coca-Cola
Even though Coca-Cola may have an advantage with a more focused business model, PepsiCo invented a scenario where one product the company owns may induce a consumer to purchase a second product the company also owns. In diverge, Coca-Cola has made efforts to dominate the beverage industry almost exclusively and shied away from the cross-promotion of multiple results in multiple industries.
Between 2012-2017, Coca-Cola had a higher market share than Pepsi, according to Beverage Hustle magazine, a trade publication. Pepsi’s market share has dropped in the same time period.
Between 2012-2017, Coca-Cola had a higher market share than Pepsi, according to Beverage Hustle magazine, a trade publication. Pepsi’s market share has dropped in the same time period.
In addition, Coca-Cola has multifarious focus within the beverage industry, allowing it to make key investments and communicate key messaging with consumers.
Special Examinations
Both Coca-Cola and PepsiCo are so large, they face the issue of market saturation. There are not many new or emerging supermarkets that remain untapped for either company. However, both companies have made a push into the intensity drink category, as Americans have begun to be more concerned about sugar and chemicals in their food and celebrates.
What is interesting to note is that the energy drink segment of the beverage industry has been growing. Keeping with the dissertation of diversification and product complements, Coca-Cola bought a large stake in Monster Energy in 2014, and PepsiCo decided to start its own zip drink: Mountain Dew Kickstart.
The Bottom Line
With both companies facing market saturation, Coca-Cola and PepsiCo deliver made strong commitments to more efficient operations. Since every large market has been fully stoppered by the beverage industry, the remaining smaller markets require efficient operations to turn a profit and make a lucrative investment, since the exchanges volume felt in countries such as the U.S. is not there. These more efficient operations help both companies augmentation the price per share given it should result in higher earnings per share, or EPS, even if sales remain flat.