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As a result, these technological changes influence the phasing out of some highly regarded popular models. Conversely, global beverages manufacturers such as Coke and Pepsi operate in an industry that is not influenced by technological changes to necessitate the need for a formula change. For this reason, the two continually divest while the recurrent expenditure for the auto manufacturers continually rises to ensure production.
Brand equity has been crucial to Pepsi and Coke since consumers valued the brands and identify with them consequently purchasing products from the two firms continually. For this reason, the two companies have created unique brands unlike companies such as Detroit. Indeed, what the two companies rely on is the brand equity since consumer studies indicate that Coke and RC have no different taste. Conversely, creating brand equity has evaded Ford and GM for long. Furthermore, the choice of selecting a particular brand of beverage arises from personal considerations that make consumers stick to the particular brand. On the other hand, facts related to features and prices of a model guide consumers to choose the brand of choice.
Factors such as imitations and employee turnover, affect General Motors and Ford’s sustainability since they are a threat to the firms’ advantages in technology and economies of scale. In this case, the copyrights held by the firms at times expire while other firms imitate them and come up with similar products. On the other hand, the formula used to manufacture products by Coke and Pepsi is unique and thus inimitable.
To end with, automobile manufacturers have an unlimited access to a wide market enabled by the internet and the option to engage in dealership with other countries for their products. On the other hand, beverage manufacturers and producers of perishable goods entering the market face a challenge to identify shelf
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