Differentiating Between Market Structures in an Organization - Essay Example

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Differentiating Between Market Structures in an Organization Name Instructor Course Date There are numerous other soft drink manufacturers but Coca Cola is profoundly renowned as one of the world’s most affluent soft drink manufacturer among the best brands such as Pepsi…
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Differentiating Between Market Structures in an Organization
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"Differentiating Between Market Structures in an Organization"

This explication aims at differentiating between the market structures of Coca Cola, an organization in the manufacturing industry. Coca Cola has ingenious competitive strategies that align to its market structures. Such include diversified advertisements and offering of sponsorships to both global and local events, such as the Beijing Olympics. Coca Cola concentrates on expansion and augmentation of the product range, with more than 3000 beverages on stock (Sutton, 2012). It has recently expanded its market in China, where Pepsi reigns. Coca Cola is ever innovative and aims at remaining efficient. For instance, the company plans on installing freestyle drink dispensers throughout the USA to fulfill clientele choices, with use of great technology. With such innovations, Coca Cola can easily cut prices and receive instantaneous feedbacks from its clients with ease. This also makes the process of test marketing cheaper. Such competitive strategies keep Coca Cola a major duopoly in the soft drink industry globally. Coca Cola has a duopoly market structure with its main competitor, Pepsi Company. A duopoly happens when there are only two chief businesses in the marketplace, without regard to the existence of other small companies within the market. The best prospect for Coca Cola is to agree and cooperate with its duopoly counterpart, Pepsi, in the restriction of output of their products and barrier to entry of other non-alcoholic beverage manufacturers. This offers Coca Cola a magnanimous share of the market where the price of its merchandise is above the marginal cost and where profits can shoot towards the maximum. In Coca Cola’s market structure though, it may face organizational quandaries when other beverage companies introduce new products into the market, which elicits a hard time for Coca Cola to maintain a competitive advantage over its rivals. The efficacy of Coca Cola’s market structure competitive strategies comes with the maintenance of a top-down competitive advantage in the beverage manufacturing industry. Coke is the biggest based on market leadership with its trademark selling large volumes over an extensive geographical scale. Owing to its oligopoly market structure that is highly competitive in the market, initiation of business partnerships with other affiliations enables Coca Cola to offer a firm brand portfolio to its consumers and customers. Its massive assortment of beverages gives Coca Cola an upper hand as a one-stop shop for its consumers and elicits growth of its target markets globally. Owing to the nature of Coca Cola’s highly competitive market structure, it initiates collaborative clientele relationships, channel marketing, multi-segmentation and client value management to its competitive advantage. Given the nature of the Coca Cola’s market structure, the company needs to be innovative and aggressive in order to maintain its respectable position in the soft drinks industry. To maximize its profits, Coca Cola should put into place ingenious marketing and advertisement campaigns to its customers and engage in corporate business partnerships in the target dispensations that would immensely promote its brand. Encouragement of managerial expertise in its workforce operations would aid in workers exchanging experiences and sharing ideas in forums that would help the affiliation to maximize its pro Read More
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