Coca-Cola - The coke beverage was discovered in 1886, by...

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The “coke” beverage was discovered in 1886, by John Pemberton (www.thecoca- cola company.com). Mr. Pemberton passed away a couple of years later, so he was never able to see what a success his product truly came to be. The Coca-Cola Company is an example of monopolistic competition. There are other soda drink companies, but they all have their own unique flavor. The company’s biggest rivals are Pepsi and Cadbury Schweppes (Leith). Typically consumers prefer one carbonated beverage to another and it’s not always easy to get them to switch. Drink companies have spent many marketing dollars to convince customers that their drink is best. The Coca-Cola Company has benefited from their type of market structure. Any new entrepreneur can enter the market, with sufficient funds, and compete with Coke. The Coca-Cola Company can set their own price, within reason, and still satisfy their customers. Obviously, they will pay close attention to Pepsi and Cadbury Schweppes. If Coca-Cola raises prices much higher than their competitors it might be enough to force
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Coca-Cola - The coke beverage was discovered in 1886, by...

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