Coke and Pepsi are constantly doing taste tests to prove which is a more popular drink. They spend a great deal on advertisements every year, as well. This is an example of which of the five forces?
A) bargaining power of customers
B) threat of new entrants
C) bargaining power of suppliers
D) rivalry among existing firms
E) threat of substitution

Question

Quizplus · Accepted Answer

This scenario illustrates "rivalry among existing firms" as Coke and Pepsi are engaging in competitive actions like taste tests and advertising to outperform each other in the market.

Coke and Pepsi Are Constantly Doing Taste Tests to Prove