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The barriers to entry are high, and therefore the threat of entry is categorized as a high risk in the industry.
The value -chain activity of the soft drinks journey to the customer is centred on four functions: Production, marketing, packaging and distribution. new entrants need to excel in all areas if they are to survive in this global village. The capital requirements within this industry are very high. Production, distribution and advertising are a must to compete with the industry leaders like Coca Cola and Pepsi Co. the incumbent will face a dilemma; come in at large scale and risk strong reaction from existing firms or come in at a small scale and accept a cost disadvantage thus there will be failed economies of scale. This is a high barrier because there is a need to invest large financial resources in order to compete. Capital is necessary for inventories, credit, and absorbing start-up/production losses.
then there is brand loyalty and shelf space allocation by distributors
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What are some examples of oligopolies in the US?
Auto Industry, Airline Industry, Soft Drink ( Pepsi, Coke, Cadbury-Shweppes )
What kind of market structure is the soft drinks industry?
An oligopoly.
Why demand for soft drink as a whole inelastic but demand for Coca-Cola is elastic?
Because there are many alternative brands for Coca Cola that have more or less the same taste. When the price of coca cola rises, demand decreases because consumers will find alternative brands that taste the same but at a lower price, therefore demand is elastic. Demand for soft drink as a whole is inelastic because whether or not the price increases/decreases, demand would not decrease/increase by a whole lot, since it's the consumers' preferred choice of drinks (just like milk is inelastic). Just because the price increases, doesn't mean that consumers will start to drink water all the time, they'll just drink less amounts of soft drink than usual (and vice versa).
Why demand for soft drink as a whole inelastic but demand for Coca Cola is elastic?
the demand for cold drink as whole is inelastic bcoz the price wont have much effect on its demandbt price for coca cola is elastic because if pric of coca cola will increase then its substitute pepsi is available
Why are soft drinks considered bad for you?
Soft drinks being bad for you is a very popular myth, they are actually no worse than other drinks like apple juice. As with everything it is the amount consumed that makes the difference. That being said, high fructose corn syrup used in soft drinks is not as healthy as the natural sugars in juices.
How big is the soft drink industry?
Soft drinks is a $61 billion a year industry
When did the soft drink industry originate?
mid-1880s
What do you think is the key to success in the soft drink industry?
The acid is the success in the soft drink industry because of it's textur and if there wasn't it would be very flat
How did the soft drink industry originate?
The soft drink industry began in the mid-1880s with the creation of a syrup that was mixed with carbonated water and served at drug store lunch counters.
What is a competitor to Coca-Cola in the soft drink industry?
Pepsi
What is the Philippines Leading Soft Drink Industry?
coca cola
What are the marketing conditions of the soft drink industry?
ok but they honestly suck
Who are the leaders in the soft drink industry?
Coca-Cola and Pepsi-Cola controlled more than 70 percent of the U.S. soft drink market, producing the majority of the industry's best-selling brands.
What is an example of a bulk gaining industry?
-Soft-drink bottling industry -Fabricated-metals industry (vehicles, refrigerators, etc.)
How many sodas are produced every year?
Almost 8 million soft drinks per year. The soft drink industry is a $61 billion industry.
What are example of oligopolies in the US?
Auto Industry, Airline Industry, Soft Drink ( Pepsi, Coke, Cadbury-Shweppes )
What has the author Jeff Goldberg written?
Jeff Goldberg has written: 'The soft drink industry' -- subject(s): Market surveys, Soft drink industry 'Anatomy of a scientific discovery' -- subject(s): Endorphins, History, Research
