Cola wars case study
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1.Why is that soft drink industry so profitable?
(From Exhibit 1, it is observed that, assuming unchanged annual liquid consumption per capita, soft drink consumption, which can be extrapolated by deducted beer & wine consumption from total annual liquid consumption, is actually slightly lowered during 1970 to 2000 period. So we assumed the question is actually asking about CSD industry instead of aggregate soft drink industry.)
First of all, the soft drink industry is an profitable industry due to:1) its high concentration ratio: the top three companies account for 90% of total ma…
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