The Cola Wars: Coca-Cola’s Competitive Advantage
Coca-Cola, an iconic global soft drink brand has exemplified a competitive advantage factor over all other competitors. Throughout their 125 years of success, the brand has maintained a superior business position, above all competitors. Despite economic downturns, shifting consumption patterns, and increased concerns over healthy eating and drinking habits, the brand has maintained its popularity over competitors such as PepsiCo. The cola war between the two brands has lasted for decades, with the advantage shifting between the competitors. But by looking at the statistics, Coca-Cola has won the cola war. Coke controls 42% of the total carbonated soft drink market, compared with Pepsi's 30% (“Coke Vs. Pepsi: By The Numbers,” 2014).
Coca-Cola has been selling large portions of their bottling business, revamping them to greater increase their efficiency. Afterwards the company will be focused on pioneering new products, in response to the demand from global consumers for healthier fayre and brand marketing. Coke is expected to see a 7-8 percent income increase, by the end of the 2017 year (Whipp, 2017).
Positioning Coke products as a premium brand, rather than bargain-priced and mass-produced products, changed customer's’ perception toward Coca-Cola products. This is largely done through packaging (Tedone, 2016). Consuming products from new packaging concepts such as glass bottles, and personalised cans, creates a unique experience for customers, every time they consume a Coca-Cola product. In response, this has resulted in a dramatic sales increase. In...