When Substitudes Enter a New Market

One of Stav’s blog entry describes the emergence of Pepsi’s market with a competition of Coca-Cola. As two of the products are considered closely as substitudes in the business world, therefore, the factors on how these products influence consumers have been a major part to consider.

To begin with, both of the brands are well known and they share a lot of similarities. In consumer’s mind, they care more whenever the new idea comes across first into their eyes through marketing. Therefore, it requires many operations to put emphasis on their marketing strategy and be creative, to make the strategic differentiable market plans as well as the profit growing plan.

Also, as the company should also make plans on how to target their consumers, because for most of the population, people would choose Coca-Cola over Pepsi, maybe it’s just due to its history since it is earlier launched in this industry. By controlling these factors, the company should easily have a comparative advantage than its competitors. Purchasing power would be another great external factor that help build the path for the company to make marketing strategy.

In Conclusion, similarities increase the company’s competitiveness and therefore the company should consider more about other factors that help enhance its uniqueness.

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