Pepsi-Cola

15 Pages 3691 Words

his large global company. “Coca-Cola and PepsiCo realized many years ago that significant increases in sales were more likely to be achieved overseas than in the already saturated U.S. marketplace”(Wright, 292). Pepsi’s goal is to pump up sales and profits by taking advantage of some synergies unavailable to its rival Coke and thereby boosting Pepsi’s lagging share price.
When discussing the external environment and the opportunities faced to PepsiCo, Coke becomes a major factor. As Pepsi and Coke continue their cola wars, each compete and grab as much of the market as allowed by the other. Whenever an opportunity is available to differentiate the two, it is rare for one to allow it to pass. However, Coke passed on the opportunity to merge with the owner of the most popular sports drink, Quaker Oats. “The Gatorade brand whet PepsiCo's appetite, with its 80% command of the US sports drink market” (http://www.hoovers.com/co/capsule/7/0,2163,11237,00.html). PepsiCo could not resist, and on August 2, 2001 it completed its merger wit...