Soft drink industry has been achieving greater profits since the time immemorial and the

contributing factors are as indicated above. Competition within the industry has been great
and the two companies namely Coke and Pepsi have formed a barrier to new entrants.
Competing against a well-established brand is virtually impossible and therefore, their loyal
customers remain their key stakeholders, hence profitability. The soft drink industry has
existed for a considerable period of time, and all those times, the industry’s market share has
been growing. A larger market share denotes a larger customer base, and so more revenues
are generated. This has been facilitated by pricing strategy.