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Soft Drink Industry

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Subject
Economics
School
Chicago Public Schools
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Homework
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Running head: SOFT DRINK INDUSTRY 1
Soft Drink Industry
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SOFT DRINK INDUSTRY 2
Soft Drinks Industry
The article on, coca-cola vs. Pepsi-cola and the soft drink industry, elaborates on how
competition in the soft drinks industry has shaped the industry. Since their formation and
incorporation in the 19th century, Coca Cola and Pepsi- Cola have been the key players in the
soft drinks industry. The companies started as franchises that were allowed to bottle, package
and distribute soft drinks in the United States. The soft drink industry consisted of carbonated
water, a sweetener and a flavor base. By 1990, the Coca-Cola Company had the highest market
share and this improved its performance competitiveness in the market. The stiff competition
between the Coca-Cola Company and Pepsi saw a lot of developments in the soft drinks industry
since it led to the introduction of new products in the industry hence boosting its growth and
development.
Analysis
Coca-Cola Company and Pepsi Cola companies were not the only players in the soft
drinks industry. Other firms such as Seven Up, Dr. Pepper and Royal Crown Cola were also
key players in the soft drinks industry in the United States after World War II. The presence of
many companies in the United States increases the levels of competition. The high levels of
competition in the market led to the famous cola war however the key players in this war were
the Coca-Cola Company and Pepsi-Cola Company. The commerce war entailed both price war
and other forms of competition in the industry. As a result of the high levels of competition in
the market, new products were introduced in the market hence giving customers in the market an
opportunity to enjoy products that they could not previously enjoy. The levels of marketing also
improved significantly (Porter, 1991). The companies promoted their products using different
promotional strategies in the market hence boosting their competitiveness and performance. The

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Running head: SOFT DRINK INDUSTRY 1 Soft Drink Industry Name: Institution: SOFT DRINK INDUSTRY 2 Soft Drinks Industry The article on, coca-cola vs. Pepsi-cola and the soft drink industry, elaborates on how competition in the soft drinks industry has shaped the industry. Since their formation and incorporation in the 19th century, Coca Cola and Pepsi- Cola have been the key players in the soft drinks industry. The companies started as franchises that were allowed to bottle, package and distribute soft drinks in the United States. The soft drink industry consisted of carbonated water, a sweetener and a flavor base. By 1990, the Coca-Cola Company had the highest market share and this improved its performance competitiveness in the market. The stiff competition between the Coca-Cola Company and Pepsi saw a lot of developments in the soft drinks industry since it led to the introduction of new products in the industry hence boosting its growth and development. Analysis Coca-Cola Company and Pepsi –Cola companies were not the only players in the soft drinks industry. Other firms such as Seven – Up, Dr. Pepper and Royal Crown Cola were also key players in the soft drinks industry in the United States after World War II. The presence of many companies in the United States increases the levels of competition. The high levels of competition in the market led to the famous cola war however the key players in this war were the Coca-Cola Company and Pepsi-Cola Company. The comme ...
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