Unformatted text preview: o Exit barriers o Fixed costs o Lack of product differentiation o Switching costs Coke is all about happiness. Coke is their grandpa's generation. Pepsi is about rebel's drink, target the new generation. The switching costs : the psychological switching costs. But not economic switching costs for cola. The brand loyalty is strong. What can be done to neutralize bargaining power of suppliers?(in the cola beverage industry) Commodity product o Narrow the sell options of the supplier though market consolidation, merger or alliances . o Develop alternative sources of supply o Buy or ally with a supplier, or develop exclusive sourcing arrangements with them to assure access to the factor at the lowest possible cost, greatest value. o Diversity your product offerings When demand is falling, it would affect the price according to the economic...
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- Winter '12
- psychological switching costs, economic switching costs