Soft drink industry Essay Example

Soft drink industry Essay Example Soft drink industry Essay Soft drink industry Essay The stretch of competitive exploits and reactions among companies under the soft drinks industry has shaped the competitive dynamics in the trade in the sense that the competitors in the industry have rivaled one another in terms of the products they offer and the target market. For example, the attempts of Coca-Cola and Pepsi to focus ahead into soft drinks bottling have established the element of ‘capacity’ as a primary aspect in the industry (Fahey). However, the competitive dynamics in the soft drinks industry is also affected by huge alterations in the commercial environment (Fahey).In essence, the competitive dynamics in the soft drinks industry serve as one indicator that the market itself is operating on a standard cycle market. One of the crucial factors that determine the cycle market in this industry is the season or the annual weather cycles as well as the climate in various geographical territories. As these changes determine the supply and consumption level s of the products, these changes also tend to revitalize the product image. The packaging of Coca-Cola, for example, has undergone notable updates throughout its production and distribution although the â€Å"essential product of Coca-Cola remains relatively static (Hunt).† In general, these changes in turn create perceptions from competitors, prompting them to address these changes by creating something of their own.Coca-Cola, Pepsi, and Virgin Cola are three of the top soft drinks competitors in the industry which have both their distinct specific product images and their commonalities in terms of overall product packaging and consumers. While Coca-Cola has succeeded in maintaining their ‘ribbon’ logo or icon throughout the years, Pepsi has made attempts at recreating its own logo. Although Virgin Cola has also been able to maintain its distinct logo, it nevertheless has expanded in terms of its name, placing the same ‘Virgin’ labels to the added v arieties to its line of products.Competitive actions, or the important efforts done firms in order to achieve competitive edge in the industry, also share a significant portion in the commercial environment among soft drinks firms.   Three of the major competitive actions that occurred in the industry within the past two years include competitive pricing, stock availability, and promos. For instance, Coca-Cola, being extensively dispersed globally, constantly adopts low-cost operation (Davidson, Keegan and Brill). The same is true for Pepsi and Virgin Cola in terms of adjusting product prices as a tactical action in relation to the rates offered by the competitors. Stock availability and promotional campaigns, with the former being a strategic action and the latter being a tactical one, also share a vital role in the actions taken by these firms in obtaining a higher status above the rest.Looking into the future, the competitive positioning and importance of major industry competi tors will significantly change in the next five years for several reasons. These changes are considerably determined by consumption and supply levels on both the international and local scales. Further, the technological changes that lead to lifestyle changes also contribute to shifts in the strategies and tactics and, hence, in the competition among the firms in the soft drinks industry. With the recent technological advancements in the line of production, these firms will eventually adopt the most viable means of extending and increasing their productivity rates and, consequently, their distribution capabilities.In essence, the next five years will create a series of changes in the whole industry of soft drinks, extending not only within a specific geographical border but also within the expanse of the world, reaching the farthest places and bringing to these spots the changes that these firms constantly adopt in order to survive the competition and, probably, to obtain a comparat ive advantage above the rest.