As Gatorade is connected to PepsiCo, the main and main competitor of Pepsi and Gatorade would be Coca-Cola and PowerAde (under Coca-Cola). According to Hoovers, next in line to compete with PepsiCo and Coca-Cola would be Mondelez International, Inc. (Hoovers.com). Gatorade is part of the “energy, sports, health and nutritional drink manufacturing (primary)” sector (Hoovers.com). With the two main competitors being PepsiCo and Coca-Cola in the beverage manufacturing industry and both companies producing multiple products, it's no wonder they compete in almost everything they produce. PepsiCo is headquartered in New York (Hoovers.com), with more than 274,000 employees in total for the year 2013. PepsiCo was founded in 1919 and its primary industry is considered “soft drink manufacturing”. Coming back to Hoovers, PepsiCo exceeded $66 billion in 2013 with net income of $6.74 billion (Hoovers.com). PepsiCo relies heavily on its marketing skills and its ability to advertise its product and make it a must-have product for consumers: “To promote its products, PepsiCo uses a combination of sales incentives, discounts, advertising and other marketing activities. Advertising and other marketing activities totaled $3.7 billion in 2012 compared to $3.5 billion in 2011” (Hoovers.com). On Hoover, he goes on to explain what PepsiCo's strategy is: "The key to PepsiCo's growth strategy is to lead snack brands into new markets by launching into new, more nutritious food categories through small acquisitions and alliances. » Regarding Coca -Cola, producer of PowerAde, says Hoovers, which is headquartered in Georgia and employed 150,900 people in 20...... middle of paper ......beverage trial for athletes, has weak negotiating power. These particular sports drink industries have low bargaining power due to competition within the industry. Gatorade is unable to overcharge for its product due to its main competitor PowerAde and, conversely, PowerAde cannot overcharge due to losing its consumer base to Gatorade. The two things Gatorade and PowerAde have in common are their brand image and the loyalty of too many consumers. So their pricing strategies are not completely based on each other because they have buyers who will stick with what they think works best for their body, tastes the best, and offers the recovery factor. the highest. But businesses need to be aware of what their competitors are doing to be able to maintain the loyal base they've created..