The very first bottle of Coca Cola came into the world in America, so as Pepsi, but it is later than Coca Cola for 12 years. The taste of Pepsi is extremely close to Coca Cola’s, so they named their coke after Coca Cola. Since Coca Cola is used to the 12 years to expand their brand name, they had already had a steady customers base and had controlled most of the soft drinks in the market, when people thought about cake, they would think of Coca Cola naturally. Although Pepsi once decreased the price of the coke to 5 cents per pound (a half of Coca Cola’s price) , Coca Cola’s status was not shaken by it. In the market of beverage, Coca Cola is the leader, and Pepsi is the challenger. As the challenger, there are two strategies that can be chosen: challenge Coca Cola to gain more market shares, or participate in the competition but make sure there will not be a huge change in market shares. After trying the second one for 5 decades, Pepsi noticed that it did not help much. As a result, Pepsi started to use the first choice, this is what they have been doing after World War Two.