... allows coca cola to get bigger and more powerful through increasing sales and market share. Such an expansion is an advantage for coca cola and its costumers because when a business is big enough and has high output, economies of scale can be achieved. This is where as output increases average cost per unit falls. If costs are low it means that prices can be lower which means costumers are attracted and as a result demand increases. This increase in demand will cause an increase in total revenue and as a result profit will increase in the long term,or the company can use its cost savings in investing in other areas such as quality, new products or marketing. Coca Cola has amassed extreme customer loyalty, which has reduced consumer price sensitivity over the years and increased price inelasticiry. Thus, although Coca Cola's users can switch brands at anytime due to ...

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