Since both the company’s market share so large, the market is very close to a duopoly (other players having a very small impact on the market). Hence we assume this to be a situation of duopoly. The 2 companies sell products which are very close substitutes and are constantly fighting for greater market share. A person may buy a Coke product instead of a Pepsi one, and vice versa. The objective of both is to maximize their profit.
First off, jobs are created because someone must make, transport, and distribute the alcohol. Also, due to the higher than normal sales taxes on alcohol, it had a great tax revenue for the federal government. It’s a win-win situation: the Feds get money, while the people have fun and get drunk out of their minds! Alcohol also positively affected the economy because it heavily depended on railroads, telegraphs, and mechanical refrigeration. (The Brewing Industry) Railroads are gaining profit because alcohol producing companies are paying them to distribute their product to stores.
Target's main goal is to be the main shopping center for families. It's a classy discount store that focuses on customer loyalty and also has brand names that the customers wouldn't mind paying the higher prices for. Target's slogan, "Expect more, pay less" is recognizable throughout the country. It's also recognized for their coupons, red card rewards, and distinct red logo. Even when the economy takes a hit Target sales continue to grow, proving that it is one of the top retailers in the game at the moment.
Their prices on petroleum allow them to be a substantial substitute in the industry because of the low switching costs. Consumers are also able to go to other quick service restaurants that either stand alone or operate in another convenient store. Bargaining Power of Suppliers The bargaining power of suppliers is high because the industry is heavily controlled and the products that are needed are imperative to the company’s operations. The Pantry’s use of forward integration contributes to this bargaining power. They receive much of their in-store goods from Budweiser, Frito Lay, and Coca-Cola, who in turn provides delivery services directly to stores.
Finding alternatives may be difficult because PVC has a lot of greater features such as being cost efficient, durable, scratch resistant, and formable. The alternative of thermoplastic urethane (TPU) is twice the price, which will increase cost significantly for the company. Herman Miller as a company must not only work to incorporate their new C2C design protocol but simultaneously keep good relationships with suppliers and keep cost
The health angle is an excellent strategy as you point out. They also market Yoplait, El Paso, Bisquick and Betty Crocker which are very strong brands. One criticism that I have for this company is that it is very dependent on the US Market for the bulk of its sales. They have a growing international presence but I think that they should be stronger. The one competitive issue that such a company has is a great deal of private labeling.
Without competition, companies would not have the need to adjust their prices, or improve their products to win over customers, resulting in low quality goods & services with high prices. Competition generally has a positive impact on the consumers, as when companies begin to strive to be the best and most successful in their industry, they utilise marketing strategies to win over customers, these include but are not limited to price, product, promotion and place. Two companies which are continually constructing innovative ideas to come out on top are PepsiCo and Coca-Cola. These two companies hold the majority of the market power in the non-alcoholic beverage industry. They are classified as an oligopoly concentration as the two firms control the vast majority of the market share and therefore requires the two companies to compete on prices as well as non-price related aspects.
Thumbs up, Maaza and Kinley are consider as the star product of the Coca Cola Company. This is because the refreshment sold to customers are mainly from India and United Arab Emirates, which contributes the most cash to the company as people consider this as their first choice of carbonated soft drink. The Coca Cola company believes that these three beverages have high growth and a market share. Cash Cows: A product that generates more money than they require are considered as a cash cow. This is because the product is known as the leaders of an organisation in the marketplace and company take out little fund when investing .
In addition, the demand for private label brands has increased significantly, and large retailers, like Walmart, this makes devoting more shelf space to these brands a profitable venture (Campbell Soup Company Form 10-K Annual Report, 2014). Any downturn or disruption of sales, for an extended period of time, could adversely affect the Campbell Soup’s consolidated net sales (Campbell Soup Company Form 10-K Annual Report, 2014). These
In their constant battle with Pepsi over market share, Coca Cola puts a lot of emphasis on brand recognition in and attempt to increase the sales of existing products in existing markets. Finally, the use of the market development model is evident by the fact that Coca Cola is the world’s most recognized brand. Coca Cola, unlike Ruth’s Chris, enters into markets that are undeveloped. They provide a highly commoditized product for a very low price. This allows them to have a larger geographical footprint than Ruth’s Chris.
By focusing on having numerous locations for accessibility and assessing customers’ needs, Wal-Mart has been able to sustain a competitive advantage in the industry. The company leverages its massive size to exert high purchasing power over its suppliers and, therefore, it can obtain significant cost savings and pass them down to consumers with heavily discounted prices. (Britanny Carter) They also offer a large variety of products, including national, local, and private brands, giving extended choices to their customers. Competencies: Walmart’s ability in procurement is very strong. Keeping prices low, and even matching competitors’ prices are ways that helped them become the common choice retailer for any ordinary households.