Market Analysis : Coca Cola Company

The demand for an item can depend on various factors as I mentioned earlier. There is a terminology that we use to describe the willingness of a buyer to spend a certain dollar amount on the demand of his choice. The price of a good has a correlation with the quantity that is being demanded. For example, if a Starbucks cup of coffee costs $2, 100 buyers will spend money on coffee every morning, but if the price of the coffee goes up to $4, then only 45 buyers will be willing to purchase that cup of coffee every morning. Not only can the price for the cup of coffee can go up, but it can also go down, another example would be if the price drops to $1, the demand for coffee will now come from 160 buyers versus the 100 buyers that were willing to pay $2 for their coffee; this would be classified as

In this report, I will be distinguishing Demand and Quantity Demanded by stating the differences between both terminologies. By referring to the textbook which we are using throughout our course plus resources from the internet, I have been able to collect some information about the definitions of demand and quantity demanded. The factors which affect the movement along the curve and shifting of the curve have been stated in the following pages in this report. Demand and Quantity Demanded are different in terminologies and also literally. The demand and quantity demanded curve has differences and it can be seen in the figures which I had pasted below.

An increase and decrease of any of these factors affecting demand will result in a shift in the demand curve. Depending in its inward and its outward shift, there will be a shift in the quantity demanded and price.

The soft drink industry has an oligopoly market structure, with PepsiCo and Coca-Cola being the two main competitors. Coca-Cola is #1 in soda sales, PepsiCo #2 and Dr. Pepper- Snapple #3. Other competitors in the beverage industry are Monster Beverage Corporation, Nestlé S.A., Red Bull GmbH, as well as local and regional companies such as 7-up, Jones Soda, Faygo and Town Club (“Pepsico Inc 's”, n.d). “Approximately 64% and 17% of Coca-Cola and PepsiCo’s valuation, respectively, comes from

The law of demand shows that a.there is an inverse relationship between price and quantity demanded.b.the demand curve is positively sloped.c.when the price of a good increases, the quantity demanded increases.d.the supply curve is

The demand curve is used to show and predict future changes in the market. The demand curve is plotted on a grid with the prices on the y-axis and the quantity of good on the x-axis. The demand curve’s plots are made with lines that slope. When changes occur in the market, the demand curve will shift accordingly. When income increases the demand curve will shift outwards due to more goods being requested. Shifts can be caused due to a multitude of reasons including, but not limited to: changes in income, changes in preferences, changes in expectations, changes in the prices of competitors, changes in population and more. When the demand curve is combined with a supply curve, it can function as a multi-purpose graph that can also depict the equilibrium quantity, or the most efficient quantity of goods to be produced at the best

One factor that might have shifted this demand curve is a change in taste and/or preferences. Say this demand curve was for popcorn. When people really like and want popcorn the demand curve will shift. Another factor that might have shifted this demand curve is a change in price for a complement like cheese spread. If the price of cheese spread for popcorn is reduced then the demand for cheese spread and thus popcorn would increase, shifting the demand curve for popcorn.

Changes in demand factors other than price of the good will result in a change in demand. An increase in demand is depicted as a rightward shift of the demand curve. An increase in demand means that consumers plan to purchase more of the good at each possible price. A decrease in demand is depicted as a leftward shift of the demand curve. Income is another factor that can affect demand. If a good is a normal good, increases in income will result in an increase in demand while decreases in income will decrease demand. If a good is an inferior good, increases in income will result in a decrease in demand while decreases in income will increase demand. Other factors affecting supply include technology, the prices of inputs, and the prices of alternative goods that could be produced. An advance in technology, a decrease in the prices of inputs, or a decrease in the prices of alternative goods that could be produced will result in an increase in supply. A deterioration of technology, an increase in the prices of inputs, or an increase in the prices of alternative goods that could be produced will result in a decrease in

Therefore, Elaine's expectations for birth control sponges effects her demand curve and the supply curve does not change. This leads her to buy more sponges. Lastly, her tastes also is a factor in her demand. In consumers and supplier must expect the

In 1886, the Coca Cola Company was developed but it wasn't until 1898 that the fierce competitor Pepsi-Cola entered into the market. These 2 companies are the two major players that dominate the consumer beverage (soft-drink) industry. Coke and Pepsi have since been competing to rein the global market in consumer beverages. The market of drinks in the United States alone is valued at more than thirty million dollars annually. With the growth of these two companies, PepsiCo has developed and acquired additional products outside the scope of just the consumer beverage industry, these products have helped the company to increase their exposure and position in the global market. This has not been the case for the Coca Cola Company; they

The Coca Cola Company is the world’s leading owner and marketer of nonalcoholic beverage brands. In order to achieve long-term sustainable growth they look at their brands, financial strength, unrivaled distribution system, global reach, and a strong commitment by management and associates worldwide. The company focuses on inspiring their employees, satisfying customer desires, nurturing partners, making a global difference, maximizing returns to shareowners, and managing for overall effectiveness. The financial statement that the Coca Cola Company provides shows their strong leadership by the data they present. By discussions held in class it allows us to analyze the following

Understanding the fundamental concepts of economics allows us to analyze laws that have a direct bearing on the economy. These laws and theories are essentially the backbone of how economics is used and studied. The law of demand can be expressed by stating that as long as all other factors remain constant, as prices rise, the quantity of demand for that product falls. Conversely, as the price falls, the quantity of demand for that product rises (Colander, 2006, p 91). Price is the tool used that controls how much consumers want based on how much they demand. At any given price a certain quantity of a product is demanded by consumers. As the price decreases, the quantity of the products demanded will increase. This indicates that more individuals demand the good or service as the price is lowered. This can be illustrated using the demand curve. The demand curve is a downward sloping line that illustrates the inversely related relationship of price and quantity demanded.

Some factors that can cause a shift in the supply curve include: technology, taxes, factor cost, and other alternative goods. Some factors that can cause a shift in the demand curve include: taste, a change in the consumer population, a change in income, and a change in other goods and availability. The graph for this week shows that both the supply and demand curves are shifting to the left. This means that both the supply and the demand are simultaneously decreasing in the market. This also means that the equilibrium price in the market has also decreased and shifted to the left as well. Business firms would view this graph as having negative progress in the market because this graph is telling business firms that they can no longer supply as much of their product as well as not many consumers are interested in their product anymore which as a result, are forced to drastically lower the price of the

The demand curve shows what happens to the quantity demanded of a good when its price varies, holding constant all the other variables that influence buyers. When one or more of these other variables changes, the demand curve shifts leading to an increase or decrease in demand. The table below lists all the variables that influence how much consumers choose to buy cigarettes.4

Coke and Pepsi are the main pieces of this market. They struggle for over a century to conquer the number one position in the market, competing fiercely in last few years, following each one's strategic decisions.