Carbonated Soft Drinks Case Study

Carbonated soft drinks lead the Soft drink market. In the U.S. the industry is majorly dominated by two companies i.e. Pepsi and Coca-Cola, whereby they dominate about 70% of the carbonated soft drinks market share. It is a high competitive market between these two giants who fight on who will have the majority of the market. Soft drinks have monopolized the industry year after year with their market dominance. The industry has massive economies of scale, large bottling and distribution networks. The company’s new beverage will compete with Coke and Pepsi and other soft drinks products for the market share. Due to its unique characteristic of it being an all natural sparkling drink, it will create a unique brand of its own and will sell to an untapped population of consumers who are not ready to consume carbonated drinks. Natural drinks with no additives are highly recommended especially in this era where there have been health concerns due to the carbonated soft drinks. These concerns have also led to a decline in the general consumption of the soft drinks as portrayed by the recent results of the major players in the business (Kotter, 1995).
The management should consider these results and make sure that the product should be free of any additives so as to
The government subsidies are protecting new entrants in the manufacturing sector so as to help the manufacturing industry to improve and maybe even reach figures posted by the services industry. The gas prices have fallen considerably, meaning consumers have more money to spend elsewhere. The state of the economy at the moment is favoring the product since one of the government’s roles in the economy is to regulate industries; henceforth coming up with a product that considers the health concerns of the people will awaken the government to act on those firms not reviewing these