Strategy Formulation for Achieving a Win$-$Win Outcome: Coca$-$Cola vs$.$ PepsiCo

Introduction: In the competitive realm of beverage giants, Coca$-$Cola and PepsiCo have continually engaged in a race for dominance in the soft drink market. Recent developments led to a critical crossroads where both companies faced the challenge of pricing strategies, raising the prospect of conflict that could impact their market standing. The prisoner's dilemma scenario emerged, presenting four possible scenarios based on different pricing decisions. This case serves as an opportunity for students to strategize and identify the best negotiation approach to achieve a win$-$win solution benefiting both entities.

Challenges and Options for Negotiation $-$ Payoff Matrix:

Pepsi

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