Coca Cola and Pepsi Companies

Coca Cola Company is the largest beverage business that deals with retailing, manufacturing as well as marketing of its products. Basically, the company deals with only non-alcoholic drinks and syrups. The mode of operation of the company is a franchise system, which is known all over the world. The company has its headquarters in Atlanta Georgia and is also listed in New York stock exchange. Since its incorporation in 1892, the company has since grown to produce over 500 different brands of refreshments and syrups.

Through the years, the company has acquired different companies all over in the line of refreshments making it a world renowned brand. The company boasts of having a covering of 200 countries with a daily sale of billions of their products. However, it is notable that most of their sales come from United States, probably because it is the home of their brand. The company has continually lobbied for a good legislation of their products in the United States.

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The move is mostly focused in the increase tax subject to the soft drinks sector. As a production unit, Coca Cola Company only produces the syrup leaving the rest to the franchises carrying the Coca-Cola brand to package the products and distribute the products to retailers and stores that sell their products. Though the company has seen much success through the years, they have not done it without complains.

Various civil rights have at times criticized the monopolistic nature of controlling the market. In turn, the company has responded to the same by changing their practices to counter such accusations. On the same note, the company has seen itself being criticized in the issue of environment. Claims have been severally made of the company overusing the water near their production unit, which in turn results to lack of water to the farmers in the area (Schwartz Para 3).

On the other hand, Pepsi is a company that is also involved in production of beverages and snacks. The company was introduced in 1883 under the name brand drink but was to be renamed Pepsi-Cola drink in 1903. The popularity of Pepsi brand of drink came about in the duration when the world was suffering from the great depression as having been cheap.

The Pepsi-Cola as it is known today was due to merging of Pepsi and Frito-Lay Inc. in 1965. The company has its headquarters in Purchase New York since 1970 after relocation from Manhattan in New York. Frito-Lay Inc., unlike Pepsi, which was involved in beverage manufacture, was involved in snack manufacturing. The company has gained expansion by acquisition of various companies that are involved in both the snack and beverage sectors.

However, their major highlight of the many acquisitions was the acquirement of the Northern America Pepsi Bottlers Group in bid to increase the control of their production. Through the years, the major competitor of Pepsi has been Coca Cola brand, which has had a bigger market in United States market. It is also notable that most of the revenue that is generated by Pepsi Company does not come from the soft drinks but from the snacks part of it.

Though the company is involved in production of snacks, the company has taken the initiative to get involved in production of healthier food. One of their mission statements in the recent years is to provide more variety of health foods to their customers. The move to incorporate healthier foods has been much encouraged by different nutritionists. In turn, the company has shown intention of focusing on even more healthy foods like fruits and vegetables.

Though there are great efforts of the company to stay on the right side of environment, there have been critics over the environmental issues that arise due to their activities. In some parts of the world like India, there have been reported instances of shortages of water (Schwartz Para 5). There has also been complains on disposal of their beverages bottles and recycling suggestions were being campaigned for.

Coca Cola Company and Pepsi have similarity when it comes to distribution of their products. For one, they tend to sell their products to franchises that are in control of marketing as well as sales. These two companies usually have interests on the franchises they sell their products to the public. It is notable their control is attached to the equity interests that they have on these franchises.

Though these franchises have some control of the production, it is notable that the brand owners Coca Cola and Pepsi are the main controls of their supply chains. In bid to control the geographical supply chain, the two companies have resulted to acquiring other independent companies. An example of the same is the acquisition of Pepsi America Inc. by Pepsi Inc.. Coca Cola has also shown this by the acquisition of North American Pepsi Bottlers brand.

Such moves by these two companies is usually aimed at controlling their supply chains from production to distribution (Ferrari Para 4). The two companies have also embraced flexibility in their supply chains so as to make sure that they are in control of other markets in different parts of the world. They have re-looked on their supply chains capabilities so that they may introduce innovative cycles that are likely to attract the attention of their consumers.

When it comes to asset management, the two companies are cautious of establishment of smarter methods of controlling their assets in production to minimize the cost of production and enhance their control of markets. The two companies have a similar way of production. They are involved in manufacturing of the syrup and sell it to the companies that are involved in bottling and distribution of the same.

To many, there is no much difference between production of Pepsi and Coca Cola companies. The two have notably the same way of production of their products as they meet a common purpose of consumer satisfaction. The production formula is different between these two brands with many people tending to take Coca Cola brand to being a little acidic in comparison to Pepsi.

Also on the same point, Coca cola incorporate caffeine in their drinks unlike Pepsi. The coke brand is also notable to having not changed through the years to meet the social changes that have taken place; this is unlike the Pepsi brand, which has embraced changes within the years (Franzen and moriarty 197).

Coca Cola and Pepsi companies are the biggest players in the beverage sector as well as the snacks sector. Any strategy brought out by each of the two companies is usually absorbed by the other with minimal changes (Banker Para 6). In turn, this has lead the companies having consistent control of the beverage market all the world over. The brands show similar trends, though Coca Cola is the bigger of the two and commands a bigger customer base than Pepsi.

Works Cited

Banker, Steve. “Coca-Cola Enterprises: Better Trucks, Happy Drivers, Lower Costs.” 15 April 2010 . 30 May 2011 .

Ferrari, Bob. “Supply Chain Structural Change Within the Beverages Industry- Initial Signposts Emerge.” 30 May 2011 .

Franzen Giep, Moriarty Sandra. “The Science and Art of Branding.” New York: M.E. Sharpe, 2008. Print.

Schwartz, Ariel. “Sustainability Faceoff: Coca-Cola vs. PepsiCo.” 13 May 2010. 39 May 2011 .

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