As the article stipulates, the oligopoly market has many implications for both the competing firms and the consumers. One of the firms in this market includes the Coca-Cola Company which is in the beverage industry. The beverage industry has few players making it an oligopoly market. In addition, the beverage industry also has barrier to entry and requires a high investment and advertising. The high operational cost in this industry prevent other companies from entering the market and the existing firms engage in product differentiation that is not based on price. To maintain dominancy in this industry, the Coca-Cola Company engages in product differentiation and also operates all over the world reaching a wide range of consumers. The packaging used by the company is also better as compared to other players in the industry.

The beverage industry is characterized by entry barriers. Though it is possible for new entrants to get into the beverage industry considering that the legalities are not strict, the threat of arrival is high. It is hard for a new firm to maneuver in the industry in the presence of the well-established companies such as Coca-Cola and PepsiCo, which have been in the industry for a long time.

The reason behind this argument is that the industry is very competitive. Any new entrant in this industry must be financially stable and have well-formulated strategies to help expand the market share and enhance competitiveness. This kind of situation is hard especially in the U.S. market, which is very unpredictable due to the high number of well-informed customers. In addition, the distribution channels set up by the existing firms, a new firms has to invest heavily in generating distribution channels.

Reference

Octotutor. (2014, July 21). The Market Structure of the Coca-Cola Company. Retrieved June 29, 2016, from https://octotutor.com/the-market-structure-of-the-coca-cola-company/

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