Determine the market structure for your company. The previous company I have use

Question

Determine the market structure for your company. The previous company I have used was the Coca-Cola Company. I would prefer it if you could please stick to answering these questions with the Coca-Cola Company example.

Pick a business that you are familiar with (preferably Coca-Cola Co.)
1. Briefly describe the business.

2. How many businesses of this type are there in the area? In the country?

3. How easy is it to start a business that would compete with this one? Are there barriers to entry or exit?

4. What type of product or service does the business produce? Is it identical to others in the industry or is it differentiated to some degree or perhaps unique?

5. How much control does the business have over its price in the marketplace?

6. Should the business engage in marketing and advertising? Why or why not?

7. Should the business develop new products or services? Why or why not?

8. Should the business develop new production (or service) technologies or processes? Why or why not?

Based on your answers to questions 2-8 above, what type of market structure model fits this business best? Why?

A note on retail businesses: Retailing is a service. Many people confuse the products the business sells with the retail service that they provide. If your business sells a lot of products which you don't manufacture, then you need to be looking at the retail service, not the product itself.

Said another way, I can buy the same product from WalMart, Costco, Target, or a grocery store. I'll make my decision on where to purchase the product based on the retail services that those stores provide - pricing, location, ease of shopping

Explanation / Answer

The Coca-Cola Company was incorporated in May,1881, around 131 years ago. The company is famous the its product named as Coca-Cola, the carbonated drink. The company has experienced monopoly for a long period in 20th century. But now due to intense competition it has lost its monopoly but still holds a major share in Beverages Industry. The Coca-Cola company has marked its presence with its “Coke” across the world with its strong distribution channel.

There are many businesses in the country who entered this Industry due to the lucrative margins. Pepsi is the strongest competitor for coke. Apart from Pepsi, Red Bull, Fanta, Sprite, Dr. Pepper, Mountain Dew, Lipton and many more hold fractions of market share.

Looking at the present scenario of the Beverages Industry, there is already intense rivalry in the industry. Entering this Industry will be very difficult and even if enters, it will be very difficult to survive in the Industry which consists of big players like Coca-Cola & Pepsi. There are barriers to entry like the distribution channel, the suppliers etc. which is very strong for big players.

Coca-Cola produces mainly carbonated soft drinks. It ranges from Classic Coke to diet Coke, coca-cola cherry, Coca-cola Zero and many more. It is somewhat identical to the other Industry product. But it has maintain the unique flavor it has which none of the other player on the industry could imitate.

The was a big case between Pepsi and Coca- Cola about identical flavor, but coke won the case stating that it has unique taste.

The business initially in 20th century had a lot of control on price due to monopoly system but with the increased competition it does not have that much control on the price of the product.

The marketing for this company is always taken as an example. People know the company by the name of the products it has. It has marketed itself so well that common people address anytype of soft drink as “Coke”.

Innovation is key to success and so the company should come up with other types of beverages which is different from this carbonated product.

Based on the above the market stucture that fits the most is the Monopolistic Market, Where there is competition but the products are hetrogenous in nature and can be differenciated.

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