Case 2.4 Coke and Pepsi Learn to Compete in India BRIEF SUMMARY OF CASE CONTENT: This is a detailed and comprehensive case describing the market entry of two global consumer product companies‚ PepsiCo and Coca-Cola Corporation into a Big Emerging Market (BEM)‚ India. It traces the history of the challenges encountered by these two companies in the developing country environment of India from the late 1980s to the present time. Emphasis is placed on lessons learned by the two companies as they
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OLIGOPOLY INTRODUCTION Oligopolists maximize their total profits by forming a cartel and acting like a monopolist. Yet‚ if oligopolists make decisions about production levels individually‚ the result is a greater quantity and a lower price than under the monopoly outcome. The larger the number of firms in the oligopoly‚ the closer the quantity and price will be to the levels that would prevail under competition. The prisoners’ dilemma shows that self-interest can prevent people from maintaining
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OLIGOPOLY Oligopoly is a market with a few sellers. Fewness means in this market number of firms is such that one firm’s action affects the other firms in the market. Hence whenever any firm makes any decision regarding price etc‚ it has to take into account the behavioural response of the other. This main feature of oligopoly is called interdependence. This interdependence brings forth the need for strategic decision making. Strategic decision making involves conjectural variation. Conjectural
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various types of market structures but the most important of all is the oligopolistic market structure. An oligopoly is when a market is dominated by relatively few large firms. An example of an oligopolistic market structure is commercial banking and the newspaper industry. One of the other market structures is Perfect Competition (PC). The way that firms in perfect competition set the price of their products is through the MC=MR condition for profit maximization and at the same time marginal cost
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DAVID B. YOFFIE tC Cola Wars Continue: Coke and Pepsi in the Twenty-First Century For over a century‚ Coca-Cola and Pepsi-Cola vied for “throat share” of the world’s beverage market. The most intense battles of the cola wars were fought over the $60-billion industry in the United States‚ where the average American consumed 53 gallons of carbonated soft drinks (CSD) per year. In a “carefully waged competitive struggle‚” from 1975 to 1995 both Coke and Pepsi achieved average annual growth
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MARKET IN INDIA In India‚ cold drink market is growing exuberantly day-by-day and coming out as a most profitable business. All the activities of cold drink market are revolving around three major competitors i.e. coke‚ Pepsi and cad buries. Out of these three‚ two coke and Pepsi have a face-to-face competition with unequal brands. Cold drink market is flourishing rapidly with a total market of 3000 crores from which Rs 1800 crores market is snatched by cola flavor and market
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Pepsi [pic] ASK FOR MORE!! INTRODUCTION At the 20’s and 30’s in the 20 century‚ Coca-Cola was the absolute leader of soft drink market. Pepsi-Cola was just a new brand at that time. Pepsi-Cola was thought of just a copy of Coca-Cola and its flavor is similar to Coca-Cola. So the Coca-Cola did not take any importance for it. But later Pepsi-Cola developed fast and became the strongest competitor to the Coca-Cola and now Pepsi shared 40% of the market. It is a big threat
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OLIGOPOLY AND MONOPOLISTIC COMPETITION Up to now‚ we have covered two extreme types of markets. We covered perfect competition with the highest degree of competition‚ then we covered monopoly with the lowest degree of competition. Now‚ we will cover oligopoly and monopolistic competition. These two market types are in between two extremes: they show some features of competition and some features of monopoly. Oligopoly Definition: Oligopoly is a market structure in which there are a few sellers
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ISSN: 2249-4588 & Print ISSN: 0975-5853 Consumer Preference Coca Cola versus Pepsi-Cola By Abdul Munam Jamil Paracha‚ Muhammad Waqas‚ Ali Raza Khan & Sohaib Ahmad University of Lahore‚ Pakistan. Abstract - This study is conducted between two global giants Coca Cola & Pepsi-cola. This research paper is basically a comparative study of two well known competitors in beverage industry of Pakistan which are Pepsi Cola & Coca Cola. The primary purpose of this paper is to find out which company
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to respond to your entering the European and Canadian markets? Is it more likely to be an accommodating response (normal competition) or aggressive response (price war)? In considering your response‚ you should list both the reasons for NutraSweet to adopt an accommodating response (normal competition) AND an aggressive response (price war). * Nutra Sweet is already well established and can enter the market quite easily and is able to set up high economies of scale Normal competition: *
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