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The production and distribution of CSDs involves four major participants: 1) Concentrate producers that the process of their job involves little capital investment where only one plant is enough to serve the entire US. 2) Bottlers that in spite the fact that their operating margins were razor thin their profits often exceeded 40% 3)Retail channels 4) Suppliers. The US soft drink market share of Coca Cola Company (hereto "Coke") and PepsiCo Inc. (hereto "Pepsi") grew from 53.8 % in the year 1970 to 75.5% in the year 2000. From this fact we can learn that the soft drink industry structure is a structure of two dominant firms holding the market power and a competitive fringe with many smaller firms acting as price takers...
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