Question 3: What strategies did Pepsi employ to enter this industry dominated by Coke? What was Coca- Cola's strategy to combat new entrants? What influenced Coca-Cola's likelihood to attack or respond? Why? As a small firm like Pepsi, how can you successfully enter an industry without being crushed by established firms that have abundant resources? As an established firm, how can you successfully deter new entrants? Is a new entry harmful to incumbents' profit?