This analysis will use the top companies in the food and beverage industry. In a the past three years, PepsiCo Inc., Tyson Foods Inc., Nestle and the Coca Cola Company. All of these companies portray exemplary performance, they are all not as consistent in their competition. A few of these companies make very inconsistent profits that fluctuate each year from high profits to also large losses. PepsiCo Inc. is among the companies that are very successful and consistent in the market. The company has continually provided good quality to its consumers. Tyson Foods is also a well performing company, but which also fluctuates in its profits. This essay will compare Nestle and the Coca Cola Companies. Nestle is a consistently well performing Company whose competition is Coca Cola. Yet, these two companies are on very different competition positions. It is important to realize that the strategies Nestle has used over the years in gaining a competitive advantage over its rivals involve both advertisement and appeal to truths and facts.
Of these companies, the essay will compare Coca Cola and Nestle. While Nestle and three others in the list of five companies have shown progress in total sales, the Coca Cola Company has continued to drop in the same. In any case, it recorded a drop in income of 4.9%.nestle, on the other hand, has proved consistence over these three years. It would be right to consider Nestle as the largest multinational company in the world from analysing its income. The Swiss company has a number of brands which aid its competition as a firm. Nestle was also number 9 in the FT Global 2013. It has also been the most profitable organization over the past three years.
Nestle has become a key competitor in the Food and Beverage industry firstly because of its nutritional concerns over its market. The company uses such nutritional information to appeal to more consumers as compared to other beverage companies such as Coca Cola. The component of Coca Cola drinks has led to the company losing a substantial number of consumers that seek to lead more healthy lifestyles. Furthermore, the Coke brand sparked controversy for being declared addictive and unhealthy due to its caffeine content. The company also takes advantage of the good management it has had since it was founded in the early twentieth century.
While Nestle and Coca Cola are competitors, they are also in very different positions of competition. This is because one of them offers soft drinks while the other offers a different kind of drink. It is, therefore, evident that a different approach is in use by Nestle over Coca Cola. Most consumers would choose Nestle and remain loyal to its products due to the effect that health and nutrition campaigns have on the market. Nestle also has a very well organized strategy. Despitethe sponsorships that Coca Cola has in various events and teams, Nestle has an upper hand since it has little rivalry in the events it chooses to support. Its advertisements also target a larger group of people that includes children when compared to Coca Cola. Not to say that the Coca Cola Company does not target the same groups but that it faces greater challenges since parents and guardians avoid any potential caffeine addiction implications on their children.
An analysis of the performance of these two companies in the last three years shows that Nestle has performed incredibly well during that period. Nestle Company has remained on top of the market due to its capitalization strategies utilize advertisement and marketing. Such strategies enable the company to reach out a larger market and gain a competitive advantage over the Coca Cola Company. The company has also undertaken several sponsorship projects which have successfully promoted its products. It has shown exemplary profits and management at the same time. It has scaled the heights of competition at the same time to outdo Coca Cola Company. The Coca Cola Company has been in the industry longer and has also been a good performer. It is, therefore, right to conclude that it has taken the Nestle Company a lot of hard work and skill to rise so far. The Nestle Company has taken advantage of the market and its health concerns in advertising and marketing its product.
It is important to note that the profits that Nestle has made in the past three years and more are as a result of both quality production and advertising. Inasmuch as advertisement is concerned, it is also truthful to say that Nestle is the healthier beverage provider when compared to Coca Cola. The Coca Cola Company is also questionable and limited due to the carbon footprint it has as compared to other companies. The requirement to lower carbon footprints makes it harder for the Coca Cola Company to make as much profits as it made befores
Works Cited
Craig S Fleisher, BabetteE Bensoussan. Strategic and Competitive Analysis: Methods and Techniques for Analyzing Business. Paris: Pearson Prentice, 2003. Print.
Oster, Sharon M. Modern Competitive Analysis. Oxford: Oxford University Press, 1999. Print.
