Coke And Pepsi Case Study

If two companies are both selling the same product, which one would sell first? It depends on the price and quality of the product. An easy example is fast food chains. McDonald 's and Wendy 's both sell the same type of food, therefore they are constantly competing with each other by lowering prices, improving the quality, and creating more appealing products. Whichever one is cheaper and

1. A) The slope of the PPF (production possibilities frontier) shows the opportunity cost of moving from one mixture of goods to another. The slope will always be a negative because there is a balance between the two goods, representing the principles of scarcity and opportunity cost.

We support the statement ‘Monopolies have led to the success of many economies in the world, and therefore, they should be maintained by government if they want their economies to continue enjoying economic growth and prosperity’. This is because monopolies are large in size, they benefit from economies of scale and are able to generate a huge amount of profit- larger than other market structures. With this money, they can invest in research & development, improving their existing products and creating new ones. Moreover, monopolies have a great impact on a country’s economy. Two very large monopolies that positively impacted the United States economy is Standard oil and Steel Company.

The number one goal in any type of business, whether it is Apple Inc., American Eagle, or even a lemonade stand, is to develop revenue. Many circumstances come into play when demanding for revenue. Inelastic and elastic are two great examples of generating revenue. Inelastic occurs when the change in price is greater than the quantity change, after all making the equation less than one. This means people are not too disturbed with the price change; then again items that are inelastic are the needs.

Part D Review of Prices 4.1 Gatorade’s pricing strategy The Sports drinks industry is a monopolistic competitive one where the market structure is characterized by large firms such as Coca Cola and PepsiCo and entry into the market is easy. Sports drinks are similar but each brand has differentiated products in its range from its competitors.

Market Structure - Oligopoly Oligopoly is a market structure whereby a few number of firms owns a lion’s share in the market. This market structure is similar to monopoly, except that instead of one firm, two or more firms have control in the market. In an oligopoly, there are no upper limits to the number of firms, but the number must be nadir enough that the operations of one firm remarkably influence and affects the others (Investopedia, 2003). The Walt Disney Company is categorized under an oligopoly market structure.

About the Paper Authors: David B. Yoffie and Reene Kim Title: Cola Wars Continue: Coke and Pepsi in 2010 Journal name: Harvard Business Review Volume & Issue: 9-711-462 Year: May 2011 Introduction This case study observes the industry structure and competitive strategy of Coca-cola and Pepsi over 100 years of rivalry.

ECONOMICS PROJECT Name: Saatwic Malhotra Course: BBA.LLB (H) Section: A Enrollment Number: 7058 ACKNOWLEDGEMENT I express my sincere thanks to Mrs. Tanu Sachdeva, my economics teacher who guided me throughout the project and also gave me valuable suggestions and guidance for completing the project. She helped me to understand the issues involved in the project making besides effectively presenting it. My project has been a success because of her. PEPSICO • PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Purchase, New York. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products.

(Investopedia nd) An example of an Oligopoly would be the infamous rivalry between Coca Cola and PepsiCo. Monopolistic competition is characterised by a large number of firms marketing similar but slightly different products. It contains characteristics from a monopoly as well as from perfect competition. Consumers have many substitutes to choose from in this market structure.

The products in the industry are non-homogeneous and hence, they do not have close substitutes. A monopoly is characterised by asymmetric information. Consumers, who buy the product, do not have the same information as the supplier and

The price elasticity of Colgate’s product is inelastic (-0.894) for Store One’s sales, which reflects the data represented in Figure 1.1. Inelastic demand implies that the quantity demanded changes slightly with a large movement in price. However, as their respective elasticity values are extremely close to 1, even a moderate price movement will have a noticeable effect on demand. As seen in the sales of Store One in Figure 1.1 the range between the maximum and minimum values is substantial. Conversely, the price elasticity of Prodent’s good in Store One is elastic (-1.377), indicating that demand is more responsive to a price change than Colgate’s product thus proving that Colgate is the most dominant firm in Store One.

Monopolistic competition is similar to perfect competition and in most cases they happen to be more realistic, because the products are differentiated

Ronald Coase discovered the groundbreaking field of law and economics that won the Nobel Memorial Prize in 1991. Coase stayed ac active scholar through his career, he published several books and lunched academic journals that discussed the problem of social costs, nature of the firm, monopoly and durability, and paradigmatic example of a public good. His work over the past years is impossible to summaries adequately, however this essay will undergo the challenges that Coase concerned himself with and they way he approached them. Coase main concern was the actions of firms that impose negative externalities on others, the modest way that coase begin his paper in 1960, which permanently changed the way economists dealt with the topic of social

Danielle Walker, an American female is the president and CEO of Training Management Corporation (TMC). Founded in 1985, the company was built to deliver practical consulting and solutions that meet and have the ability to turn multicultural business environment to be able to overcome operational challenges. TMCorp help companies worldwide distinguish similarities and differences in its work environment and help to maximize performance to reduce risk, with this done, innovations then can be enhanced with the most effective way. The company headquarters is situated in United States, regional offices in Singapore to serve Asia-Pacific and in Belgium to serve Europe, Middle East and Africa.

This means that if one of the firms increases the price of their above P in order to increase revenue the firm will experience elastic demand. This is because if one firm increases its price the other firms will keep their price the same, consumers will increase their demand for the lowest price as the products are homogenous, therefore the demand for the product with the highest price will decrease and become more elastic. However if a single firm decides to decrease its price below P then it will experience inelastic demand. This is due the other firms lowering their price in order to keep market share. If the other firms lower their costs the firm will gain demand from it initiative.