explain why Coca-Cola is more profitable than the industry average

Expert Solution

Coca Cola is more profitable than industry average because of the following reasons.
barriers to entry into beverage industry is relatively high because of its large advertising budget. the company is largest seller of non alcoholic beverages in the world. Coca-Cola has a concrete and rigid business model which is evident in its dividend history. the beverage industry is expected to increase by dollar 300 million between 2015 and 2020 and it is expected that the Coca-Cola holds major portion of market share. coca Cola is has been serving its customer for the past 130 years and almost 20000 Coca Cola beverage is being consumed every second. Product is sold in more than 200 countries, more than 2 million Coca Cola product is being served daily. Coca-Cola has 20 brands with over 1 million per year in sales under its umbrella, this product portfolio has created significant diversification which in turn protects the company from any downturn in interest of any single product or brand.

keosha answered 1 year ago

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