I need help in answering this question and including the strengths and weaknesses below For Coke and Pepsi?

Question? How can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-carbonated soft drinks.

SWOT - Coca-Cola

Strength

• Highly recognized brand
• Customer Loyalty
• Secrecy over the mix "Merchandise 7X"
• The larger market share since 1970
• Advertising power/trademarks
• Leader in fountain sales domestically and internationally
• Ability to expand product mix/diversification
• Business in over 200 countries

Opportunity

• Expending to non CSD beverages/non-carbs beverages globally
• Expand internationally to emerging markets ex. China
• Broaden the scope of innovation

Weakness

• Break from tradition (April 1985) by changing the 99 year old formula
• Declining market share in U.S. market (Ex.7)
• Declining CSD gross margin
• Focusing on CSD - between 2004-2007 released 56% of non-carbs compared to Pepsi 77%

Threat

• Health oriented customers
• Price-sensitive customers
• 9% higher Pepsi non-carbs market share
• Environmentalist - concern for the planet
• Changes in customers needs and tastes
• International restrictions, antitrust regulations, foregin exchange policies, local competition
• Cultural differences

SWOT - PEPSI

Strength

• Expanding portfolio to snack market "The Power of One" (snack and Beverage company)
• Higher market share in the non-carbs product
• Snack acquisitions
• Successful marketing campaigns against Coke - taste contest

Opportunity

• Expanding Internationally to Asia, Middle East and Africa - CSD markets
• Expand to non CSD beverages and snack markets
• Innovation

Weakness

• Low market share in fountain sales
• Declining growth rate
• Declining market share in beverages

Threats

• Customer shifts toward healthy drinks
• Decline in growth rate
• Health oriented substituts
• Environmental changes
• Political changes and legal restrictions
• Price decreases due to other non- carbs offerings

• Differentiation of products, product innovations and portfolio differentiation as well as international markets increased sales and brought higher profits
• Price decreases affected bottlers negatively ( with the product differentiation bottling process cost increased) producing lower profitability (only 8% of profit was generated from sales as opposed to concentrate producers whose profit margin was 32%