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Investigation Into Coca-Cola and Pepsi as a Duopoly

Herlin, Hadar LU (2023) NEKH03 20231
Department of Economics
Abstract
The soda beverage industry has a global duopoly where Coca-Cola and Pepsi dominate the market. This paper aims to investigate how that duopoly can still exist after decades of competition trying to break the oligopoly where a combination of qualitative and quantitative methodologies where empirical evidence is featured to help validate theoretical assertions. Firstly, the companies financial data in the form of stocks and dividends gets analyzed to see how the market thinks then the actual real world prices from grocery stores gets investigated compared to beverages outside the duopoly. Secondly, to try explain how the duopoly have succeeded at such an insurmountable level where smaller companies have not, different economic theories have... (More)
The soda beverage industry has a global duopoly where Coca-Cola and Pepsi dominate the market. This paper aims to investigate how that duopoly can still exist after decades of competition trying to break the oligopoly where a combination of qualitative and quantitative methodologies where empirical evidence is featured to help validate theoretical assertions. Firstly, the companies financial data in the form of stocks and dividends gets analyzed to see how the market thinks then the actual real world prices from grocery stores gets investigated compared to beverages outside the duopoly. Secondly, to try explain how the duopoly have succeeded at such an insurmountable level where smaller companies have not, different economic theories have been used and analyzed for this specific scenario. While an exact pinpoint on what caused the affluence of Pepsi and Coca-Cola haven’t been made, a good foundation has been layed at explaining several reasons for it. After having read the paper the reader should have an understanding that the competitive advantage stems not only from the early entrant over 100 years ago from both companies but also good strategic business decisions that investors also agree on that’s reflected in the market cap for both stocks. (Less)
Please use this url to cite or link to this publication:
author
Herlin, Hadar LU
supervisor
organization
course
NEKH03 20231
year
type
M2 - Bachelor Degree
subject
keywords
Oligopoly Duopoly Market Dominance Soda-beverage industry
language
English
id
9139225
date added to LUP
2024-01-22 15:49:13
date last changed
2024-01-22 15:49:13
@misc{9139225,
  abstract     = {{The soda beverage industry has a global duopoly where Coca-Cola and Pepsi dominate the market. This paper aims to investigate how that duopoly can still exist after decades of competition trying to break the oligopoly where a combination of qualitative and quantitative methodologies where empirical evidence is featured to help validate theoretical assertions. Firstly, the companies financial data in the form of stocks and dividends gets analyzed to see how the market thinks then the actual real world prices from grocery stores gets investigated compared to beverages outside the duopoly. Secondly, to try explain how the duopoly have succeeded at such an insurmountable level where smaller companies have not, different economic theories have been used and analyzed for this specific scenario. While an exact pinpoint on what caused the affluence of Pepsi and Coca-Cola haven’t been made, a good foundation has been layed at explaining several reasons for it. After having read the paper the reader should have an understanding that the competitive advantage stems not only from the early entrant over 100 years ago from both companies but also good strategic business decisions that investors also agree on that’s reflected in the market cap for both stocks.}},
  author       = {{Herlin, Hadar}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Investigation Into Coca-Cola and Pepsi as a Duopoly}},
  year         = {{2023}},
}