Coke refers to Coca-cola which is a dominant product of the Coca-Cola Company. There are six parts in this essay to display the market structure, factors affecting price, demand and supply, substitute and complement products, elasticity, market competitors and some factors of production of the Coke.
A classification system for the key characteristics of a market, including the number …show more content…
The substitute product is very important for a product. One of the Porter’s five forces analysis mentioned that the threat of substitute products or services. The substitute products are attractive alternative because the similar price and flavour, when the substitute products lower switching cost, the customers will easily shift to the substitutions. Also the similar price, quality and performance of the products will promote customer’ comparison when they are purchasing.
On the other hand, the substitute products may affect the quantity of demand of a product. Based on the law of demand, when the price of a good rises, other things remaining the same, and its relative price its opportunity cost rises. Although each good is unique, it has substitutes, other goods that can be used in its