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The history of the corporate development of such brands as Coca-Cola and PepsiCo is associated with the prolonged market competition for the greatest share in the market and industry and for attracting more consumers. In spite of the fact that the products of Coca-Cola and PepsiCo are similar in taste and quality, both these companies take the leading positions within the market of soft non-alcohol drinks.
To understand the particular features of the companies’ competition, it is necessary to focus on differences in the corporate cultures. Coca-Cola and PepsiCo follow different competitive strategies and focus on various elements of the corporate culture in order to help consumers differentiate the brands and their missions along with the brands’ images.
Corporate culture is the complex notion according to which people working in the company share the same organizational values, visions, and norms. There are definite systems and principles basing on which the leaders organize the employees’ activities. Corporate culture also includes such concepts as corporate beliefs and ideals distributed in order to attract consumers to share these beliefs and values (Balmer & Gray, 2003).
John Stith Pemberton designed Coca-Cola as the specific mixture to treat depression and apathy in 1885 (Coca-Cola: Workplace culture, 2013). In 1898, a pharmacist Caleb Bradham designed a drink with the similar taste which becomes later known as Pepsi (PepsiCo Values & Philosophy, 2012). Focusing on similarities in the taste and quality of the products, it is important to note that differences in the corporate cultures are the main factors to create the effective brand image and compete successfully within the market.
In its corporate culture, Coca-Cola depends on the ideas of diversity and leadership along with creating the conditions for the fair working environment. From this point, the company leaders concentrate on maintaining the positive working atmosphere and accentuating the human dignity (Coca-Cola: Workplace culture, 2013).
PepsiCo operates the idea of motivation and empowerment. If Coca Cola accentuates the effective leadership, PepsiCo emphasizes the role of each worker in the process of production. The accent on the positive relationships and the focus on the team work of employees in Coca-Cola company is the opposite strategy to that one used in PepsiCo where the company’s leaders are inclined to rely on effective benefit programmes to motivate employees (Mitchell, 1996).
The above-mentioned differences are connected with the organizational norms and approaches to treating employees in order to establish the successful corporate structure and culture.
However, it is necessary to focus on three ways which the companies use to compete within the market and take the leading positions. While Coca-Cola determines entertainment, optimism, and passion as the main concepts to promote the product, PepsiCo focuses on the other segment of the target audience, emphasizing the idea of the healthy lifestyle and high-quality nutrition.
Thus, the two companies are inclined to promote different ideals and orient to different target audience (PepsiCo Values & Philosophy, 2012). Moreover, Coca-Cola proclaims that the companies depends on innovation and contributes to ‘refreshing the world’ when PepsiCo uses this approach to accentuate the role of the company in protecting the planet and promoting the healthy lifestyle (Coca-Cola: Workplace culture, 2013).
If Coca-Cola operates the principle of stability and high-quality with references to the company’s history, PepsiCo develops the idea of the company’s history focusing on the companies’ innovative and responsible approaches to the production (Garfield, 2000). From this point, the companies emphasize the differences in the corporate values in order to promote the products, and they can benefit from the competition while supporting the idea of differentiation.
Changes in Coca-Cola and PepsiCo’s corporate cultures can result in the further progress of this or that company. To continue to thrive in the future, Coca-Cola can use successfully the effects of such changes as the accentuation of the product’s quality with references to the ideas of trust and responsibility.
This approach should be relevant both for treating the employees and consumers. The changes in the organizational values can lead to affecting the traditional brand image negatively that is why it is important to operate the idea of combining tradition and innovation.
PepsiCo can continue to develop the corporate culture according to the principles of the global modern company respecting the world’s progress. Thus, more focus on diversity can help the company to achieve the higher position and improve the competitive strategy. PepsiCo effectively uses the concentration on short-term and long-term goals, guaranteeing the balance in the strategic development. References to the ideals of globalization and diversity can contribute to the company’s progress positively.
Corporate culture plays an important role in contributing to the company’s effective development and market competition. Competitive strategies which are used by Coca-Coal and PepsiCo are based on determining the differences between the companies, their approaches, and ideals in order to attract different segments of the target audience. The further accentuation of differences can guarantee the successful competition within the market and industry which is based on sharing various beliefs, norms, and values.
References
Balmer, J., & Gray, E. (2003). Corporate brands: What are they? What of them? European Journal of Marketing, 37(8), 972-976.
Coca-Cola: Workplace culture. (2013). Web.
Garfield, B. (2000). Pepsi may win challenge, but loses most crucial test. Advertising Age, 71(13), 73-74.
Mitchell, A. (1996). Pepsi still losing the cola wars. Marketing Week, 19(3), 26-28.
PepsiCo Values & Philosophy. (2012). Web.
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