PepsiCo
PepsiCo
products are enjoyed by consumers one billion times a day in more than 200
countries and territories around the world.
Economic Concepts related to PepsiCo
1.Law of Demand: When price of the Pepsi increases
people consumes less quantity and when there is a decrease in Price they will
consume more a quantity.
2.Economies of Scope: PepsiCo not only gets benefits from
economies of scale but also from economies of scope. It is a play in a market
when a company grows by diversifying the scope of production, by reducing the
risk of the business by competing the different sectors of markets.
3.Marginal rate of substitution: As Pepsi and Coco Cola are substitute
goods. People will substitute Pepsi with Coco Cola when there is increase in
the price of the Pepsi.
4.Incentives: Incentive is what make people to
respond towards a product. Pepsi provides different offers and cashback when it
is purchased through different mediums.
5.Oligopoly: Pepsi belongs to oligopoly market. It
is a market where there are only limited suppliers for same product in the
market. Along with Pepsi there are Coco Cola, Thumbs up, Fanta, Minute maid
etc.
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