This document analyzes the competition between Coca-Cola and Pepsi using various frameworks including Porter's Five Forces, PEST analysis, and the resource-based view. It finds that Coca-Cola and Pepsi dominate the soft drink oligopoly through brand loyalty and large marketing budgets that create barriers to entry. While demand is slowing domestically, growth opportunities exist in international markets like China. Both companies operate in fast economic times and imitate each other's strategies, though their secret cola formulas and brand images remain rare and valuable resources.

3. Switching costs are low for consumers who risk very little by trying new brands or beverages

6. The “1980 Soft Drink Interbrand Competition Act” preserved the right of CPs to grant exclusive territories to their bottlers, giving less bargaining power to Bottler’s buyers because there will be no alternative supplier in that are anymore

7. Bottlers have to accept into contracts that grant CPs the right to set prices and other terms of sale

8. Bottlers are allowed to handle the non-cola brands of other Cps, if the CP sees the other not as direct competitor. They can also choose about carrying new beverages introduced by the CPs but cannot carry directly competitive brands

10. International demand for carbonated soft drinks is growing, but domestic demand is slowing down

11. Exit barriers are high for bottlers with expensive equipment, moderate for concentrate producers

13. An increasing trend in consumption of CSDs Metal and Plastic containers commonly used by bottlers are recyclable are viewed as environmentally friendly

14. Cultural differences across international markets are challenging when it comes to daily operations and marketing cola industry products

16. Anti-trust legal suit against Coca-Cola by Pepsi over fountain drink monopolization in the domestic market was dismissed in 2000

18. Unsuccessful products like the “New Coke” vanish from the market quickly, new products such as the Vanilla Coke emerge

20. The Pepsi challenge takes the form of a taste test. At malls, shopping centers and other public locations, a Pepsi representative sets up a table with two blank cups: one containing Pepsi and one with Coca-Cola. Shoppers are encouraged to taste both colas, and then select which drink they prefer. Then the representative reveals the two bottles so the taster can see whether they preferred Coke or Pepsi. The results of the test showed that Pepsi was preferred by more Americans