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The fact that there are no switching costs associated with pop
. . .
As already discussed, the trends towards consolidation of the grocery store industry and consumers increasingly seeking a one stop shopping experience is the largest threat to NBC. As well as being able to compete price-wise, National Beverage Corporation is also well equipped to produce quality beverages. However, NBC may not be able to capitalize on this opportunity given its weakness in mainstream distribution channels. According to its 10K, it competes by “appealing to the ‘quality-price’ sensitivity factor of the family consumer...
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