| (3) Start your own soft drink company, sell for 40 cents instead of 90
cents. This (given your math) will still give you a whopping 700% profit.
You will blow the competition away in volume! Everyone will hail you as
the liberator of soft drinks!
Sorry, been tried and didn't work...
Soft drinks are a classic oligopoly. Anybody can make soda pop, but only a
few can obtain product differentiation and brand loyalty through massive
marketing dollars. Pepsi and Coke learned long ago that competing on price
doesn't gain them as much market share as spending money on Britney Spears
and Christina Aguilera.
-Dr. Steve
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