Coca-Cola Wars

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Title: Coca-Cola Wars

Essay Details:

Subject: Business

Author: Curtis H

Date: September 8, 2016

Level: University

Grade: A

Length: 4 / 1085

Essay text:

Due to the similarity between both Coca-Cola and Pepsi products, the minimal product differentiation creates willingness from consumers for substitution and causes the company to force price cuts to increase sales. This was very obvious by Coca-Cola and Pepsi’s pricing wars and very heavy advertising and promotion expenses. The next force I took a look at was the threat of new entrants into the business. It is very hard for a new entrant to come into the concentrate industry and expect to compete with Coke and Pepsi. This is due in part to the barriers to enter the industry. The costs alone to set up a new concentrate company are extremely expensive with R&D, fixed costs with production and manufacturing as well as other general start up costs...

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