Case Study : The Soft Drink Industry

1258 Words Nov 21st, 2015 6 Pages
The soft drink industry has been around for over 100 years and has been growing since. The reason whey there are so many brands of soft drinks are because the soft drink market is very profitable and people want to get in on it. As long as companies remain competitive, which they have been, and improve technology to reduce the cost per unit that they sell, the soft drink industry will remain profitable. According to Barbara Murray (2006c), “The sector is dominated by three major players…Coca-Cola is king of the soft drink-empire and boasts a global market share of around 50%, followed by PepsiCo at about 21%, and Cadbury Schweppes at 7%.” Aside from these three major companies, smaller companies such as which make up 78% of the soft drink market, there are two smaller companies, Cott Corporation and National Beverage Company, which make up the the remaining part of the market. The soft drink industry all ready has government regulations put in place, but does not need to be regulated more or less. When competing in the soft drink industry, some important things to know are: your buyers and sellers, how competitive the market is, market regulations, and the prices for the product. There are many buyers who are also sellers of soft drinks. The first category of buyers and retailers of soft drinks are supermarkets and merchandisers which account for 48% of the market. The second buyer is food service/drinking places which account for 20% of the buyers. This includes…
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