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

Competitive Analysis - Essay ExampleIts cost only includes market research, advertising and advancement and then enabling the company to minimize on the cost of returnion. On the other hand, bottlers argon provided by syrup by the concentrators where they then they mix it with sugar, wrap up with local water and carbonate it. Finally, they bottle it and then deliver it to the retailer. All these activities make the bottling business capital intensive as it requires high technology in production. Returns received by concentrate producers greatly differ from those received by the bottlers due to various reasons. The main factors as indicated in the above 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 investment of huge amount of capital as its main concern is to arch ive its main goal of improvement 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 expectant number of production materials. They invest in purchase of inputs such as packaging materials like cans, bottles and also sweeteners such as aspartame which prove to be dearly-won 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 little than those received by the concentrate producers due to the risk levels each of the company face. Concentrate producers are responsible for the brand promotion and also invest staggeringly on trademar k to stimulate sales on the other hand, bottlers have little risk in their operations as they already have an receipts i.e. have a famous name which is well known all over the world .This development provide them with stable returns and low risk (Bensoussan & Fleisher, 2008).