Coca Col Competitive Environment Essay

929 Words Nov 15th, 2016 4 Pages
Market structures describe the competitive environment in which an organization operates. The characteristics of the market structure will have a major influence on the competitive strategies and tactics that are implemented by firms. As I chose Coca-Cola Company for my research during my research I analysis that it operates in an oligopoly (Neary 2010). Oligopoly market structure is that market structure within which tiny range of firms has sizable amount of market share. It is like monopoly expects that instead of one company, 2 companies influence in market share.
The soft drink industry can be seen as an oligopoly for several reasons. First, two firms control the vast majority of the market share, which include Coca-Cola and PepsiCo. Coca-Cola has 48.6% market share in this industry where as PepsiCo has 20.5% shares rest of share of other small firms (Statista 2015). There are smaller corporations within the market, however their market share in beverage business in terribly little as compare to those 2 massive companies. Little firms do not have money power to launch brand on a big scale. Next, the barriers to entry within the business are very high. Manufacturing soft drinks for a large market would need a major investment in production instrumentation, brand material, and advertising. The high price of in operation during this business is biggest obstacle for several firms. Therefore they are not getting into the competitive arena as a result of high price of in…

Related Documents