Question

Google / Alphabet

4 - 5 page paper how the existence of non-price competition influences the performance of individual firms operating within that industry. For example, if you choose the brewing industry, you might cite Anheuser-Busch InBev as your central firm. If it is the Tobacco industry, you might cite Altria and its products. For autos, you might center on GM and / or its competitors. In Soft Drinks – Coke or Pepsi; In Footwear, you might choose Nike.

The first page of the paper would include an introduction to the industry, its structure (i.e., is it a monopoly, oligopoly or monopolistically competitive market), products, competitors, and the reason why you selected it. Perhaps you work for that industry or you own stock in a specific company and would like to know more about it and its operating environment. Or, you may enjoy a particular company’s product and want to explore their marketing techniques. The bulk of the paper would demonstrate the types of non-price competition that the individual firm and industry have used, both historically and today, and how these methods have influenced product sales of the respective firms.  

Answer 1

In the soft drink industry there are two giants in the market. Coca-Cola and Pepsi.
Competing for many decades the soft drink market has been dominated by them with a market share of approximately 75% between both of them.
This is known as an oligopoly market, were few firms dominate an industry, competing against each other.

Non Price Competition

Known as a market strategy in which one firm tries to stand out or distinguish its product from the other in many ways rather than price cuttings. For example through quality, distribution, advertising, sales promotions, new developments, market research, etc.
This will avoid price wars and at the end it is more profitable than selling at lower prices.
Among oligopolies there is no price competition because it will lead to a decrease in their own profit.
Coca-Cola strategies
COCA-COLA: The most noticeable strategy is product differentiation, and because both companies offer practically similar products, that is Coke's main differentiation helping gain more brand loyalty than Pepsi.
Coca-Cola Zero, aiming costumers looking forward to lose weight, essential for healthy consumers. An intense and huge marketing and advertising campaign was launched for the Coke Zero. This strategy of creating the Coke Zero provided Coca-Cola company with immense earnings, being placed 2nd after regular Coke, and in 3rd place Pepsi with earnings of 927 million and 892 million respectively.
Coca-Cola Strategies
Availability on a global scale:
Coca-Cola by having contracts with restaurants chains is basically the exclusive provider of soft drinks. Major fast food chains (like McDonalds) only sell Coca-Cola, ensuring the costumer the option of only buying Coke.
The main goal of this strategy is to limit the option of consumers when wanting to drink something at a restaurant, and this occurs in a global scale for Coca-Cola, creating at the same time brand loyalty.

Strategies To Survive in the Market

Coke being around since 1886 and Pepsi 1899, they have created throughout time barriers to entry the industry. To stay aboard in the industry, when new firms enter the industry, they both will lower their prices and their rivals will follow. Eventually, despite the losses they will manage to survive while the new firms will quit due to the loss.
Brand Loyalty is also what does not let the new firms to succeed. Because of their high recognition and image across the planet, its basically impossible to succeed and beat them.