The essay also examines Pepsi competitive advantage and differentiation strategy. Pepsico, Inc. managers can use Porter Five Forces to understand how the five competitive forces influence profitability and develop a strategy for enhancing Pepsico, Inc. competitive advantage and long term profitability in Beverages - Soft Drinks industry. Competitive strategy of Coca-Cola against PepsiCo is a creative approach. One competitive advantage that Pepsi has is that it produces more than just soft drinks. On the other side, a Coca Cola brand spends millions of dollars to promote their products. PepsiCo is one the biggest companies in the world. The company also strongly advertises its products and creates its products in response to ever changing market conditions. Pepsi. PepsiCo pays a lot of money to restaurants to stock Pepsi. Marketing success is the point which has helped to the Coca Cola to earn competitive advantages over Pepsi. Competitive Advantage in Promotion: PepsiCo does use its competitive advantage to attract its customers from the other beverage and snack industry. Pepsi does not spend millions of money on advertising on their brands. PepsiCo can improve competitiveness through aggressive marketing combined with product innovation. This PepsiCo SWOT analysis reveals how the second largest food company in the world uses its competitive advantages to dominate snack and beverage industries. Pepsi's competitive advantage is distribution. In the quest for creating competitive advantage, companies struggle to build unique capabilities and to acquire the means to protect these capabilities. A general sales key is to avoid price war between competing companies in the same industry because the companies must reduce their prices below the production price. Pepsi’s competitor affects Pepsi’s competitive advantage in terms of cost structure and cost advantage. Marketing is another competitive advantage of the coca-cola over Pepsi. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. Competitive advantage of the company derives from its ability to exploit and assemble an appropriate combination of resources. Both PepsiCo and the Restaurant know if someone stops to eat and orders a Coke, most of the time they will take a Pepsi, so both win. In the local supermarket the consumer considers buying the drink as part of a 6-pack for the smallest price available. Consider the purchase of a Pepsi can. It is a leading industry in the food and beverage chain that has competition from companies especially, the Coke Company. In such product innovation, PepsiCo must consider current market trends, such as environmentalism and healthy lifestyles. Another competitive advantage of Pepsi is that their quality remains steady. Brief overview of Pepsico, Inc. Free fridges, lower prices, whatever it takes. Well, this question resembles one that was placed a week ago and I replied like this: As a number 2, Pepsi as always tried very hard. Competitive Rivalry or Competition with PepsiCo (Strong Force) The Coca-Cola Company is one of PepsiCo’s biggest competitors.

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