Coke And Pepsi Market Structure Analysis

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Register to read the introduction… In a Monopoly, there is only one seller in the market place, like a major city or a geographical area they can control the prices of their product. There are two types natural and legal. Electric and gas companies are natural monopolies, and legal monopoly would be a company who has a patent on a product giving the exclusive rights for a limited time. Coke and Pepsi considered an Oligopoly with only a few sellers in their line of business. The consumers make out with the competition between the two …show more content…
When the prices go down the demand will rise. Both companies has to be ready to meet the supply and demand to keep up with consumer's quality of demand. When prices on cola soft drinks drop, so do the other soft drink manufacturers will also lower their prices to stay competitive. Price of Elasticity The price of elasticity of demand can stay competitive in the cola market. Both companies can raise or lower their prices to stay competitive. If the price goes up, the demand will go down, if the price comes down, the sales will raise. There are still the loyal customers who will buy the product no matter the price. With every promotional sale’s there will be a shift in the demand curve to the left when the prices raise the curve will move to the right. Market structure Some of the most important features of the market structure are the number of firms in the competition. Coke and Pepsi control the market structure and maintain the competitive advantage over the other soft drink companies like Dr. Pepper, Snapple, and your generic brands. With the need to provide a market for different types of soft drinks, both companies leads the way for other beverage companies to compete in the market structure. This will show if both companies works together, they can have a major impact on the market …show more content…
Regulation refers to rules that limit who can enter a business and what prices they may charge. This would help customers not to pay over for products, just because the manufacturer wants to charge a higher price for their goods. Government regulation ensures no price gouging is taking place on the market. For example when a natural disaster strikes certain companies will raise their prices because it is in high demand and the public needs the product. These practices should be reported immediately (Hallgren, 2006). The ethical implications of these strategies The ethical strategies for both Coke and Pepsi have been good for the consumers. Over the years, both companies has shown great competition ageist each other. With each, one trying to outdo the other the public enjoys the television commercials ads including the Super Bowl ones. Since the product is similar in color and taste, the consumer will buy the band that is on sale. Both companies are highly recognized throughout the world. Coke and Pepsi are also sponsors of many charities and sporting events Organization’s current

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