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Ssecolawarsgroup5b2011 110121071443-phpapp01
- 1. COLA WARS COURSE 2304 Erik Ingemansson (KTH), Karl Nielsen 40201, Henrik Engervall 20846 Contact: [email_address] hhs .se , [email_address] hhs .se , egjin@kth.se
- 9. QUESTION 2, THE BOTTLERS
Editor's Notes
- Include title page with SSE logo, name of course, names of group members, contact information, eg emails
- Supply side economies of scale = (benefit of ordering big = HARD to get into market if you have to start ordering small) 2. Customer switching cost = Doesn’t cost the customer anything to change! 3. Capital requirements = (you need a plant (high cost) and a lot of unrecoverable costs such as ads) + coca and pepsi probably owns all the bottle makers 4. Unequal access to distribution (Coca cola and pepsi have binding contracts with several suppliers as mcdonalds, and in the supermarket they take up the most space) 1. Incumbents have previously responded vigorously to new entrants = (cola and pepsi buy up everything that threatens them.) 2. Incumbents possess substantial resources to fight back = (YES)
- Homogeny product = many bottlers that can do the same thing Many bottlers are already own by the concentrate companies = making the ones left less important. Low margins thanks to high costs = gives them less wobble room.
- Low risk because of the strong brands, as long as people drink cola they should be fine. US is to addicted
- 1. Customer switching cost = Doesn’t cost the customer anything to change! 2. Capital requirements = (you need a plant (high cost) and a lot of unrecoverable costs such as ads) + coca and pepsi probably owns all the bottle makers 3. Unequal access to distribution (Coca cola and pepsi have binding contracts with several suppliers as mcdonalds, and in the supermarket they take up the most space) 1. Incumbents have previously responded vigorously to new entrants = (lots of small bottlers.) 2. Incumbents possess substantial resources to fight back = (not really to many enemies)
- 2. Coca cola and pepsi is very powerfull and set thier prices!
- People don’t go to the store if they don’t have coca cola
- US is too addicted