Cola Wars Continue: Coke and Pepsi in 2006

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Issue:

Business

 

Written by:

Hiram W

 

Date added:

April 1, 2016

 

Level:

University

 

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No of pages / words:

4 / 869

 

Was viewed:

834 times

 

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Essay content:

Fueling this growth were the increasing availability of CSD, the introduction of diet and flavored varieties, and brand extensions. There is couple of reasons why the industry is so profitable such as market share, availability and diversity and brand name and world class marketing. ? Coke and Pepsi have created an oligopoly that controls more than three-fourths of the entire industry...
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This insures little price competition, barriers to entry, and power to negotiate prices as well as distribution contracts that favourably affect their bottom lines. ? Soft drinks and snack foods are widely available and conveniently packaged. This contributes to profitability by increasing consumption which leads to greater sales and profits...
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