Coca Cola Bad for you Essay

This essay has a total of 388 words and 3 pages.

Coca Cola Bad for you



Coca - Cola
Bad for you.



On the 14th of June Coca-Cola’s soft drinks were banned from the markets in Belgium and
later also in Luxemburg and France. Two failures in the bottling system were the cause
for the nausea that the people suffered. According to the article it would have been
better if they would have acted fast and told the whole truth. Coca- Cola is in an
ologopolistic market and therefore branding plays a great role. It is possible that the
company ha lost market shares, due to this accident. In the ologopolistic market the
firms don’t compete with price, but rather with advertising and other non-price
strategies. Therefore one can predict that this scandal has shifted the demand curve to
the left. This accident can be seen as a negative externality. The government should
make Coca Cola increase their health controls (internalise their externalities), if
scandals of this sort happen again. They can enforce this by either subsidies (reward) of
in this case taxation (punishment). People who would usually only buy Coca Cola due to
the heavy advertising might try a substitute during the time of the ban. This can be seen
as a sort of free promotion for the others in the market. According to the zero sum game,
Continues for 2 more pages >>




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