Study On The Competition Trend Of Carbonated Drink Market And Access Strategies For Enterprises

Beverage industry is one which develops most quickly with the greatest potential in food industry in China. Sine 1980, the average yearly increment speed of the total output of beverage exceeds 20%, and it will keep increasing at 10%. Facing this great and tempting market, beverage enterprises home and abroad rush to join in the fierce competition. However, in the carbonated beverage market (accounting 30% of the shares of the beverage market), Coca-Cola and Pepsi Cola has always been in the monopoly position. Every beverage enterprise has long been attracted by the stable profits in the beverage market and wants to have a share in it. Some enterprises have achieved preliminary success, however most enterprises ended in failure. So, whether enterprises can enter into or how to enter into carbonated beverage market has long been the focus of discussion and attention in domestic beverage circle.Starting from the current situation in beverage industry, and the trend of carbonated beverage market, this paper analyses the competitive power of Coca-Cola and Pepsi, and draws the conclusion that there exists access barriers in the carbonated beverage industry. The barrier mainly includes economies of scale, brand effect, sales channel, administration experience, and revenge of two Cola companies. At the same time, on the basis of analyzing the requirements of diversity and individuality in the beverage market, and the trend to ask for "Naturalness, nutrition, and health" by the consumers, and after careful study, the author finds three potential opportunities to enter into carbonated beverage market: first, Coca-Cola and Pepsi cannot meet the need of market for diversity; second, the carbonated drink with Coca-Cola and Pepsi playing the leading role, cannot meet the customers' need for nutrition and health; third, the leading role and operation mode of Coca-Cola and Pepsi make the high production cost inevitable. As for how to grasp these opportunities, the paper analyses the reasons leading to the failure of domestic Cola enterprises, summarizes the enlightenment from the competition between Pepsi and Coca-Cola, and illustrates the key factors such as techniques, scale, brand, and capital that are necessary for access into beverage industry. Combining theory with practice, the paper explores the access strategies such as products diversity, low cost, concentration on special products, strategic alliance.For every enterprise, risks and opportunities of market exist simultaneously, and the key point is how to make full use of advantages and create advantages to avoid risks and grasp opportunities. The author writes this paper in the hope of putting forward strategies on how to tap existing market potential and providing references and experiences for the access into carbonated beverage market through the analysis of barriers of access into the carbonated beverage market that is monopolized by Coca-Cola and Pepsi.