Industry Definition
Coca-Cola is a product sold with in
the Soft Drink Industry under the category of carbonated soft drinks. The Soft
Drink Industry is based on the production, distribution, and marketing of nonalcoholic
water-based beverages. This industry has a history extending back to the 1700’s
when a British chemist, Joseph Priestly, discovered a way to synthetically carbonate
water.
Industry
Industry
This Industry as a whole can be seen
as an Oligopoly due to there being only two firms controlling the vast majority
of the market with a 70% (Bailey, 2014) market share. These
two firms would be the Coca-Cola Company and Pepsi Co. This industry also has
very high barriers for new entrants due to high operating costs. The two major
firms with in the industry also use non-price product differentiation in order
to compete.
Over the past few years, the carbonated
soft drink category has seen declined sales throughout the industry. This is
due to increased health awareness among consumers on the side effects of many
of the ingredients used in these beverages, including sugar. Soft drink
manufacturers have been receiving pressure to create low calorie beverages with
less sugar. Due to this pressure, the three largest soft drink manufacturers
with in the industry, Coca-Cola Company, Pepsi Co., and Dr. Pepper Snapple
Group Inc., have ensured that over the next decade they will aim to reduce high
sugar beverages by 20% (Bailey, 2014). The Soft Drink Industry is shifting in products to
meet these new consumer demands. This shift in demand is offering this industry
the opportunity to grow in different markets such as the non-carbonated
category of the Soft Drink Industry
Neary, J. P. (2014, July 21). The Market Structure of the
Coca-Cola Company. Retrieved April 15, 2017, from https://octotutor.com/the-market-structure-of-the-coca-cola-company/
Bailey, S.
(2014, November 20). Soft drink industry now looking to still beverages to
boost sales - Market Realist. Retrieved from http://marketrealist.com/2014/11/soft-drink-industry-now-looking-still-beverages-boost-sales/
Soft
Drink Industry - Dictionary definition of Soft Drink Industry |
Encyclopedia.com: FREE online dictionary. (n.d.). Retrieved from http://www.encyclopedia.com/history/dictionaries-thesauruses-pictures-and-press-releases/soft-drink-industry
No comments:
Post a Comment