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Does The Coca Cola Company Operate as a Monopoly?

1. What type of market does The Coca Cola Company operate in? Does The Coca Cola Company operate as a monopoly? Compete in an oligopolistic competition? Is it in a perfectly competitive market? Explain your answer.

2. Describe some of the specific characteristics of why you feel The Coca Cola Company belongs in that market structure. For instance, are there many firms in the industry. Who are their competitors? etc.

3. What are the advantages and disadvantages of The Coca Cola Company being in the type of a competitive market as you described in (2) above?

Solution Preview

1. What type of market does The Coca Cola Company operate in? Does the Coca Cola Company operate as a monopoly? Compete in an oligopolistic competition? Is it in a perfectly competitive market? Explain your answer.

Coca-Cola operates in the "beverage" industry, selling syrup to its franchises that bottle and distributes the final Coca-Cola products. In my opinion, Coca-Cola has operated as a monopoly, yet competes in an oligopoly market; Coca-Cola is not in a perfectly competitive market.

Monopolies are defined as market structures where only one seller or producer exists for a product; additionally there are high barriers to entry. In the United States, thanks to Pepsico, Coca-Cola is not a monopoly. However, in my research, apparently Coca-Cola has been flagged as a monopoly in various other countries where Coca-Cola products are sold. For example in Armenia, Coca-Cola was accused of breaking anti-monopoly laws when Azerbaijan Coca-Cola Bottlers "raised their prices on Coca-Cola products in 0.5 liter bottles by 31.9% thus violating the law on anti-monopolistic activities" (News.Az, 2010). In China, the Chinese rejected ...

Solution Summary

This solution discusses the nature of the Coca Cola company in about 600 words with four references provided. The market structure and competitive nature of both Coca Cola and the market are discussed in this response.

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