Yes, they can sustain profits in the industry.

The industry has been free for a long time from external threats.
The trend shows the growth of the drinks other than CSD in the US market. Energy,
Sports drink has shown a growth in recent years.
To sustain the profits in the wake of flattening demands Pepsi and Coke could tap on the
markets like Energy drinks, Sports Drinks etc. to tap the tap the emerging market.
Fragmented markets of Green Tea, Ice Tea etc. can be tapped on to standardise them on
the global basis. No other large player is present in the market, hence this could turn out to be
advantageous for these firms.
There are hardly any occasions when any company has been disrupted in technology.
Coke and Pepsi have developed their own individual brand images which make it easier
for them to diversify their product and sustain longer.
Globalization has provided a boost to the people from the emerging economies to move up the
economic ladder. This opens up huge opportunity for these firms.
Industry should be manage the growing health concerns in the emerging market:
1. Should continue to lobby FDA to prevent caffeine-warning labels
2. They should be actively participating in sports competition activities for various institutions as
sponsor.
3. They should invest more to understand more competitive market environment.
4. Better advertisement can rejuvenate the market segment and thereby both can sustain in future.