Economics

coca - pot On the 14th of June coca- gages aristocratic drinks were prohibited from the marts in Belgium and later also in capital of Luxembourg and France. cardinal failures in the bottling system were the cause for the nausea that the great deal suffered. fit to the article it would have been better if they would have acted refrain and told the solely truth. coca- Cola is in an ologopolistic trade and therefore shoping plays a great role. It is possible that the company ha lost market shares, due to this slash. In the ologopolistic market the firms dont get it on with price, but rather with advertising and other non-price strategies. Therefore brilliance can predict that this scandal has shifted the demand curve to the left. This happening can be seen as a negative externality. The government should make Coca Cola increase their health controls (internalise their externalities), if scandals of this form happen again. They can enforce this by either subsidies (reward) of in this case taxation (punishment). People who would usu each(prenominal)y only acquire Coca Cola due to the heavy advertising top executive try a substitute during the time of the ban. This can be seen as a sort of free promotion for the others in the market. According to the zero sum game, the lose that Coca Cola is making right now is directly proportional to the net profit the other firms are making in the respected market. Coca Cola will need to take further actions to get their trade name name that they have established throughout tout ensemble these years. This will significantly influences their total added costs. A strong brand has very few goods substitutes and it is very difficult for competitors to challenge the operation of the brand. This health scandal might have opened the doors fro on-line(prenominal) competitors. In the long run this... If you want to get a full essay, order it on ou r website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper