Everyone Knows Coca-Cola Essay

867 Words4 Pages
The Coca-Cola Company offers its product, Coke or Coca-Cola Classic, for sale in the beverage industry. Included in the beverage industry are sub-categories such as the soda or soft drink industry. Introduced in 1886, the Coca-Cola Company sought to offer its coke product to the masses. Coke has been successful in winning its market share of the soft drink industry as evidenced by a report that states, "the drink is reportedly recognized by 94 percent of the world's population" (Hartlaub, n.d.). In an expansion of the typical market, Coke took its place in history by becoming the first soft drink to be consumed in outer space (Hartlaub, n.d.). This paper discusses the market structure in which the Coca-Cola product is offered. The…show more content…
Examples of perfect competition would be a crop produced such as cotton or a staple produced such as poultry. Next, is Monopolistic Competition. This type of market structure is a combination of both a monopoly and perfect competition. The industry will be made up of numerous companies who have "substitute products" but whose products may have special features or benefits which enable them to differentiate themselves from their competition (Gilani, n.d.). In addition, the readiness of buyers to purchase these products allows new businesses to easily enter the industry (Reynolds, 2005). An example of monopolistic competition would be in the fast-food industry, specifically the pizza market (Gilani, n.d.). Third, is Oligopoly. In defining Oligopoly, two variations are seen: undifferentiated and differentiated. One definition states that an oligopoly is the, Market situation between, and much more common than, perfect competition (having many suppliers) and monopoly (having only one supplier). In oligopolistic markets, independent suppliers (few in numbers and not necessarily acting in collusion) can effectively control the supply, and thus the price, thereby creating a seller's market. (http://www.businessdictionary.com/definition/oligopoly.html) With an undifferentiated oligopoly, businesses in the same industry are offering the same product to the consumer. An example of an undifferentiated oligopoly is a
Open Document