Pepsi Vs Coca-Cola
With the growth in technology, many products have taken to the internet to market their products. The main concern is who manages to capture the consumer’s eye. Many people still hold to preferences today. But then there is still a very large market that is still untapped and is never sure of the products to use especially in the cases of supplements. This is what make the world of advertising grow each day as the shark companies are trying to battle each other out and have a say in the market. Pepsi and Coca-Cola are the two commodities that have very interesting trends in the market. Their advertisements are massive and all are consumer oriented. It is not the consumer alone that is not sure of what commodity to buy but the investors to. They are not sure of the commodity that is most selling in the markets today. This is because the competition is very high and the differences is small and changing every day that without any constant trend.
Economies of scale
The two products have both faced a bit of some miss haps in their markets. This was however in the growing countries where they had a few issues with the ingredients used in the manufacturing of the products. The country that was worst hit was India. However, this did not have such a significant impact on the incomes of the two commodities. Coca-cola is however reported to have some stagnation in its annual returns. They are producing more than Pepsi and have and their market is still growing but this does not reflect on the financial income. On the other hand, Pepsi does not have a very large growth in the customer base but has reported tremendous growth in its annual income. This shows that the cost associated with production of more units for coke is a bit expensive and cuts in its returns. It is likely that Coca-cola has increased to a maximum value and thus will not be able to grow further due to diseconomies of scale.
With these two companies in this state, any investor will have a great problem in deciding the product in which to invest in. Though Coca-cola still enjoys higher figurers in the stock market, Pepsi is growing at a very high and steady rate. Coca-cola could still remain a favorite even if Pepsi grows to its size just because of the loyalty of consumers. It has been into the market for a long time now and has built quite a big fan base of loyal customers a thing that Pepsi may take a really long time to achieve.