Pepsi Co Vs Coca Cola
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Pepsi-Co & Coca-Cola Wars
Minerva C. Perez
Strayer University
Accounting 100
Pepsi-Co & Coca-Cola Wars
(In millions) 2007
Pepsi-Co
Coca-Cola
Total current assets
10,151
12,105
Net property, plant & equipment
11,228
8,493
Total current liabilities
7,753
13,225
Total stockholders (shareholders) equity
17325
21,744
Not many corporations can boast of a 100 Year rivalry. The beverages industry witnessed such intense competition between Coca-Cola and Pepsi-Co That one can say that the competition between the corporations was, and still is so intense it could be likened to sibling rivalry, albeit a very serious one since finances are involved.
The product offerings of both companies are so similar, that if one were to remove the brand names from their respective products, an individual would not be able to distinguish one from the other. The companies not only compete in soft drinks, but also have branched out to other beverages including coffee, juice drinks and even water. If Pepsi were to offer a new product it wouldnt be surprising to see Coca-Cola follow suit.
But in the financial evaluation comparison of Coca-Cola, and Pepsi-Co it is easy to see Coca-Colas in the lead. This is largely due to the international market. Coca-Cola entered foreign markets a lot differently than Pepsi-Co, providing it an edge over Pepsi-Co While Pepsi-Co invested heavily in foreign markets, Coca-Colas appointed bottlers with significant experience easily neutralized any threat Pepsi-Co could pose. (Harkonnen)
Another reason Coca-Cola holds such a dominant position in world market is due to World War II. During World War II, Coca-Cola offered American service men its product for 5 Cents, wherever they were and whatever the costs the company would incur. The company would establish bottling plants (subsidized by US government), and send its product overseas wherever US troops went.
With its inexpensive price, and widespread popularity among servicemen, coupled with the eventual victory of US in Europe and Asia, the product was widely adopted throughout Europe and Asia. Due to familiarity of the product, Coca-Cola still retained a dominant