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  • Essay / Soft Drinks Case Study - 1584

    Soft drinks lead the soft drinks market. In the United States, the industry is majorly dominated by two companies, namely Pepsi and Coca-Cola, which dominate approximately 70% of the carbonated soft drinks market share. This is a very competitive market between these two giants fighting over who will have the majority of the market. Soft drinks have monopolized the industry year after year thanks to their market dominance. The industry benefits from enormous economies of scale and extensive bottling and distribution networks. The company's new drink will compete with Coca-Cola, Pepsi and other soft drinks for market share. Due to its unique characteristic of being an all-natural sparkling beverage, it will create its own unique brand and sell to an untapped population of consumers who are not ready to consume carbonated beverages. Natural drinks without additives are highly recommended, especially in this era where there have been health problems due to carbonated drinks. These concerns have also led to a decline in general soft drink consumption, as recent results from major players in the industry show (Kotter, 1995). Management should take these results into account and ensure that the product is free. of any additives in order to protect new entrants into the manufacturing sector in order to help the manufacturing industry improve and perhaps even reach the numbers posted by the service industry. Gas prices have fallen significantly, meaning consumers have more money to spend elsewhere. The current state of the economy favors product since one of the government's roles in the economy is to regulate industries; now, offering a product that takes into account people's health concerns will encourage the government to take action against companies that do not examine them.