1. Why Is The Soft Drink Industry So Profitable?
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Title: 1. Why Is The Soft Drink Industry So Profitable?

Essay Details:

Subject: Business
Author: Lavern L
Date: February 20, 2012
Level: University
Grade: A
Length: 11 / 3283

Essay text:

The industry is already vertically integrated to some extent. They also deal with similar suppliers and buyers. Entry into the industry would involve developing operations in either or both disciplines. Beverage substitutes would threaten both CPs and their associated bottlers. Because of operational overlap and similarities in their market environment, we can include both CPs and bottlers in our definition of the soft drink industry. In 1993, CPs earned 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a total industry profitability of 14% (Exhibit 1)...

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