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Speculation based on economies of scale and scope
2.1 economies of scales
Non alcoholic soft drinks industry more profit can be achieved by increasing number of goods produced like fruit juices, carbonated drinks etc so by increasing the number of goods produced companies can lower the average cost per unit by sharing fixed cost.
2.1.1 Research and development
For all companies there is a fixed cost and a portion of this is to Research and development and marketing. Research and development in the field of non alcoholic soft drinks is wide and innovative. To improve the existing products and to come up with new ones which is more natural and healthier as in the case of fruit juice they come up with new ones by mixing the flavours to attract the younger generation new label and catch phrases also part of research...
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