Cola Wars Continue: Coke and Pepsi in 2010
1. The soft drink industry is a billion dollar industry that can turn a profit in less than a
minute. There are many factors as to why this is such a profitable industry such advertising
and promotions. The two biggest corporations being Pepsi and Coke (who both need each
other in this relationship) have battled it out through the years but have always seemed to
be level with each other. The reason being that both of these companies compete with each
other on advertisements and promotions and not necessarily price. One company does not
try to make their product cheaper for the other and vice versa. Also I think that it is very
hard to have a substitute for cola. If you think about it, if you are craving some sort of
soda, does milk, water, juice etcetera really quench the craving for a soft drink? I
personally believe it does not and for this reason you can start to see how this industry has
stayed profitable and relevant for so long. Lastly, I think that a big reason why the soft
drink industry has been so profitable is because the ingredients to produce soft drinks
include cheap commodities such as caffeine, syrup, sugar, water, flavoring and so on.
Since the commodities needed to make soft drinks are so low, this gives everyone in the
soft drink industry an easy way to turn a profit. All you would need to do is mix the
commodities together, which you already get for dirt-cheap and then sell it to the consumer
