Several issues or drivers can be observed to support the rivalry existing between Coke and Pepsi. These two giant companies embrace similar business models to produce the best outcomes. This move has identified powerful strategies that can be imitated by companies in different industries. The needs of different consumers have also been considered by these companies. They have been working hard to produce quality products for different individuals. The rivalry has also led to numerous price reductions. Different suppliers have also benefited from the rivalry.
The competitive dynamics portrayed by Coca Cola and Pepsi show how companies can redefine the nature of an industry. The rivalry has forced these companies to produce superior products that can serve more customers. The “ongoing competitive action sequence between a firm and a competitor affects the performance of both firms” (Hitt, Ireland, & Hoskisson, 2010, p. 138). It is, therefore “important for companies to carefully analyze and understand the competitive rivalry present in the markets they serve to select and implement successful strategies” (Hitt et al., 2010, p. 138).
That being the case, the level of competition has led to new practices to support the health needs of different consumers. These dynamics have played a significant role in improving the level of customer satisfaction. The rivalry has also presented new opportunities for economic development. Business organizations can therefore engage in similar rivalries to promote the best practices.
Reference
Hitt, M., Ireland, R., & Hoskisson, R. (2010). Strategic Management: Concepts and Cases. Boston, MA: Cengage Learning.