Unformatted text preview: Coke and Pepsi to pursue a battle without blood? 7) Compare the aluminum smelting and concentration producing industries: Where is rivalry among the existing firms higher? What are the key factors explaining this difference? What is the main strategy pursued by firms in each industry? How does this affect profitability of each industry? 8) What would you say are the key barriers to imitation helping Coke and Pepsi to sustain their high profits? 9) Consider the following statement: A firm producing a lower-quality product may actually benefit when a rival(s) increases the quality of its product. Using the concentrate industry as an example, explain how this might occur. 10) Evaluate the following statement: “Firms pursuing differentiation strategies should always try to move as far away from rivals as possible, i.e firms should always try to maximize their differentiation.”...
View Full Document
- Spring '07
- Barriers to entry, Competitive Forces, high profits