Competitive Analysis Essay Example | Topics and Well Written Essays - 1000 words

Competitive compendium - Essay ExampleIts cost only includes market research, advertising and promotion hence enabling the keep company to minimize on the cost of take. On the other bargain, bottlers be provided by syrup by the concentrators where they then they mix it with sugar, treat with local water and carbonate it. Finally, they bottle it and then deliver it to the retailer. All these activities choose the bottling business capital intensive as it requires high technology in production. Returns received by sign up producers greatly differ from those received by the bottlers due to various reasons. The main factors as indicated in the higher up paragraph are the financial cost incurred by both companies (Fleisher & Bensoussan, 2007). Bottlers for instance incurs low cost of production as it only concentrates mainly on advertising, market research and product development whereas bottlers activities involve enthronement of huge amount of capital as its main concern is to archive its main goal of cash advance and modernization of the bottling lines which as a results requires high amount of capital (Fleisher & Bensoussan, 2007). Secondly, the other cause of variance in returns is the availability of raw materials. The concrete producers require fewer raw materials hence its major spending is on purchase of cheap inputs like citric acid, natural flavors and also caffeine on the other hand bottlers require large number of production materials. They invest in purchase of inputs such as encase materials like cans, bottles and also sweeteners such as aspartame which prove to be expensive hence reducing their profitability as they are unable to reduce on the outflow of money (Fleisher & Bensoussan, 2007). The returns received by bottlers are also less than those received by the concentrate producers due to the risk levels each of the company face. subjugate producers are responsible for the brand promotion and also invest hugely on trademark to judde r sales on the other hand, bottlers have little risk in their operations as they already have an advantage i.e. have a famous name which is well known all everywhere the world .This development provide them with stable returns and low risk (Bensoussan & Fleisher, 2008).