Oligopolies - In a high fixed cost business you can price...

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10/13/2014 Oligopolies are about playing a cooperative game Coke v Pepsi They are not competing on price They keep each other going by advertising increase demand for soda differentiation - cost go up so does wtp low cost - costs go down but so does wtp dual - wtp goes up and costs goes down low cost is not the same as low price -------------- 10/15/2014 Bottlers have a lot of variable cost and want volume concentrate producers have fixed costs and want market share
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Unformatted text preview: In a high fixed cost business, you can price really close to variable cost before you start losing money In a high variable cost business, you do not have flexibility on price--------------10/20/2014 Minoli -> revamping/turnaround -> bankrupt motorcycle industry -> segments, competitors Should he enter the cruiser market? R+D: Internal design - reduced time to market collaborations...
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