A study of competitive dynamics

The study of competitive dynamics has become a vibrant area of research within strategic management. We contribute to this research stream by examining the nature of competitive interaction between Coke and Pepsi. We found that while Coke's and Pepsi's strategies display interdependent relationships, the volatility of the interaction among strategies do not always attenuate over time, and Coke's strategies are driven by Pepsi in some cases but not others. Implications for research, practice, and limitations are discussed.

Research highlights
► Coke and Pepsi strategies are not independent, but display interdependent relationships.
► Neither firms’ strategies and tactics exhibit consistent leader / follower behaviors.
► Analysis suggests that for some competitive moves, Coke leads Pepsi, for others, Pepsi leads Coke.
► Volatility of interaction between pairs of strategies does not attenuate for all strategies.