Competition Between Companies

Topics: Coca-Cola, Pepsi, Thums Up Pages: 3 (1003 words) Published: December 4, 2010
For years many companies have struggled to be and to remain the best. To do this they had to go through advertising their products; televisions, radio, internet and sports. This is called competition; the main purpose for this is mainly to attract customers. These procedures can benefit but also be harmful towards the company. Thus brings the main concern of this essay which shall discus both sides of this situation opposing and supporting it. Firstly, brand quality of products sometimes does not matter to consumers; just as long as it is affordable. For instance there are many varieties of brands such as Nike, Adidas, Coca cola and so forth. Yet commercials show all these products and companies do not realize that the price of the product gets higher as the cost of advertising contributes to the products cost thus making it expensive. This leads consumers shopping elsewhere for instance,

MARANELLO - Manufacturers of super sports cars have just announced a host of new models, but many of them may not reach the showrooms, as the global financial crisis hits a customer segment previously immune to economic downturns. (Haupt, 2009: 1) This statement proves that consumers prefer cheaper products than fancy cars as it is too expensive. Furthermore on flexibility; Flexibility means the company’s “ability to respond to changes” (Stevenson, 2007: 38). These can be seasonal changes; winter, summer or maybe economical changes. Nevertheless they also contribute to the company’s competitiveness thus leads sometimes to price wars. Take for example;

Adverse weather conditions could reduce the demand for our products.
The sales of our products are influenced to some extent by weather conditions in the markets in which we operate Unusually cold or rainy weather during the summer months may have a temporary effect on the demand for our

Products and contribute to lower sales, which could have an adverse effect on our results of operations for...
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