Market Structures Essay Example for Free

Market Structures Essay According to McConnell and Brue (2004), a monopoly occurs when a single firm is the sole producer of a product for which no close substitutes exist. Since the United States Postal Service (USPS, 2008) has no close substitutes, competition does not exist. The Postal Service’s universal service obligation (USO) is broadly outlined in multiple statutes and encompasses multiple dimensions: geographic scope, range of products, access to services and facilities, delivery frequency, affordable and uniform pricing, service quality, and security of the mail (USPS 2008). When monopolists are not protected by law from competition, the companies may have to keep their prices low in order to keep competition from entering the market. However, USPS is considered a pure monopoly and barriers of entry are in place. USPS is the only federal operating system that sends and delivers mail. USPS has competition in the market with services such as package delivery. Now, the agency has to compete with major companies such as UPS and FedEx. United States Postal Services depends on operation funding from postage and fees. Comparatively, the Postal Service provides a higher level of service and does so at low, affordable prices (USPS, 2008). The University of Phoenix (UOP) is an institution for profit and it operates in a market structure with pure competition. According to McConnell and Brue (2004), â€Å"pure competition involves a very large number of firms producing a standardized product (that is, a product identical to that of other producers, such as corn or cucumbers). New firms can enter or exit the industry very easily,† (University of Phoenix, 2004). There are many universities, colleges, community colleges, and vocational schools for students to choose from. They offer education in the U. S. and overseas. Different educational institutions offer programs that are identical or similar to UOP. However, the tuition is not the same for all schools. UOP does not have a perfect substitute because of the many campus locations and varied degree programs. UOP does not have a significant control over the price of education. It can not change the market price; it can only adjust to it. University of Phoenix participates in Federal Student Aid grant and loan programs with attractive terms. All students seeking federal financial aid benefits must be admitted to a financial aid eligible degree or certificate program in order to determine financial aid eligibility. In order to be eligible for tuition deferment under the Financial Aid Plan, at least 50% of student’s annual tuition must be funded through the federal financial aid benefits and there are extremely strict policies that the UOP must adhere to in order to be eligible for Title IV. University of Phoenix observes the federal regulations regarding student loan requirements, including pricing and non-pricing strategies. The Arizona Student Loan Code of Conduct is designed to create and ensure uniform student loan practices that focus on the best interest of borrowers. In the Arizona Student Loan Code of Conduct, restrictions are defined to manage the relationships among school employees, learning institutions, lender advisory board members, and student loan organizations. In education, universities can freely enter and existing firms can freely leave purely competitive industries. According to McConnell and Brue (2004), â€Å"a few industries more closely approximate pure competition than any other market structure. In particular, we can learn much about markets for agricultural goods, fish products, foreign exchange, basic metals, and stock shares by studying the pure-competition model. Also, pure competition is a meaningful starting point for any discussion of price and output determination. Moreover, the operation of a purely competitive economy provides a standard, or norm, for evaluating the efficiency of the real-world economy,† (University of Phoenix, 2004). Nike is an example of a monopolistic competition. This type of market structure has many sellers. Each firm in this market sells only a small share of the industry’s output. The key to this is product differentiation. While there are many firms selling similar products, it’s the price and quality differentiation that makes the consumer choose one product over another. (Forgang Einolf, 2006) These markets are extremely competitive and each manufacturer tries to appeal to the consumer on a different level of expert service or material. (University of Phoenix, 2004). The Nike swoosh has certainly become a brand mark that consumers are willing to pay a higher price for, however, Nike must also consider the current economy and the value offered for that higher price. Their products must truly be manufactured with superior quality and materials. Nike must walk a fine line with their pricing strategy. Too high a price will cause the consumer to opt for a less expensive brand and too low a price will not offset the superior manufacturing or costs paid to athletes to endorse or assist with design on the product. Therefore, Nike continuously battles between a relative price for the average consumer and making an acceptable profit. Also, Nike must constantly put a new, trendy product on the market. Styles must change frequently and certain quantities of the product must be produced without saturating the market with similar products. The niche Nike has chosen is to eliminate certain styles within a time frame therefore, causing the consumer to upgrade to the newest, latest, styles. The J. C. Penny Company, commonly known as â€Å"Pennies,† is an American department store aligned with the practice of oligopoly. The characteristics of oligopoly have commercial groups entwined in price collusion while refusing to compete on the basis of price. It was noted by McConnell and Brue that commercial groups â€Å"share of the total market is typically determined through product development and advertisement,† (University of Phoenix, 2004). In short, oligopoly happens when a certain market is manipulated by small commercial groups. In most cases, there are two or more commercial groups controlling the market. Pennies is a retail store that carries a wide verity of health and beauty products, fine jewelry, electronics, clothing for infants, teenagers, men and women, and home decor. In most cases, oligopolies would avoid using price cutting methods. Oligopolistic commercial groups are highlighted by the existence of several commercial groups having significant portions of the market. Those commercial groups buy into calculated behavior and they have a hard time existing without each other. Consequently, the actions of one commercial group can be directly affected by the moves of rival groups and the products they produce may virtually be nearly uniform or meaningful. Another example of an oligopoly (overt) is the OPEC cartel. According to Kaplan (1999), an oligopoly is an industry that is dominated by a few firms that display highly coordinated behavior and examples of oligopoly include the auto and oil industries. Concerning the oil industry, the oil cartel OPEC (Organization of the Petroleum Exporting Countries) is a pure example of an oligopoly. OPEC is the alliance of thirteen countries that have significant influence on the price of international oil and â€Å"creating a balance between oil supply and demand† (Iran, 2008). Generally, oligopolies operate in collusion or employ price leadership. OPEC relies on these secret agreements (collusion) to govern oil in the international market. Additionally, these countries can unify and offer prices â€Å"in response to changes in costs or demands†, making other firms react quickly (Kaplan, 1999). â€Å"It is not uncommon to see several gas stations on the same block with identical prices even though they appear to be in a very competitive environment. If one stations cuts the price per gallon, the others must quickly follow of they will rapidly lose market share as consumers switch to the lower priced station† (Kaplan, 1999). This uniformity still does not have the power to ignore consumer taste. When examining the dynamic history between OPEC and consumers, it is clear that there is a cause-and-effect for OPEC’s decision. For example, OPEC has famously used oil as a leverage tool to importer nations. In 1973, OPEC and a supplementary organization decided to place an embargo on oil and subsequently raised the price of crude oil. However, Western nations transitioned creatively as they found new oil markets in other countries. Thus, the price hike did not have much bearing on the Western nations. The monopolist seeks maximum total profit, not maximum price. The monopolist shuns higher price because they yield a smaller-than-maximum total profit. Some high prices that could be charge would reduce total sales and total revenue too severely to offset any decrease in total cost† (McConnell Brue, 2004). Moreover, OPEC miscalculated production and consumer demand for oil, which resulted in too much oil production in the world market. Thus, prices began to decline due to surplus while OPEC lost much revenue and division because of competing opinions on oil prices and arguments about oil production. Recently, the 9/11 attacks and the Iraqi invasion prompted world oil prices to rise higher than OPEC quotas, which severely impacted the purchase price to Western consumers. Yet, automobile firms began vehicles with alternative fuel options, hybrid models, and decreasing the retail prices of vehicles during the economic recession. Additionally, many consumers have reacted to price hikes by using public transportation, carpooling, purchasing hybrid or alternative fuel vehicles, and/or moving closer to the city. Lastly, Western importer nations are discovering new oil markets separate from OPEC. Still, collusion allows OPEC to â€Å"reach agreements to fix prices, divide up the market, and otherwise restrict competition amongst themselves. By controlling price through collusion, oligopolists may be able to reduce uncertainty, increase profits, and perhaps even prohibit the entry of new rivals† (McConnell Brue, 2004). In respect to today’s global economic condition, a recession can severely disable a cartel’s ability to manipulate output and increase profits. â€Å"Long-lasting recession usually serves as an enemy of collusion because slumping markets increase average total cost. Firms find that they have substantial excess production capacity, sales are down, unit costs are up, and profits are being squeezed. Under such conditions, businesses may feel they can avoid serious profit reductions by cutting price and thus gaining sales at the expense of rivals† (McConnell Brue, 2004). As recently as November 2008, OPEC is considering reducing oil output. â€Å"But if crude prices continue to fall, then an additional OPEC cut may be needed. â€Å"The producer group agreed to cut output from November 1 by 1. million barrels per day (bpd) after oil prices dived from a July record of $147 a barrel to less than that. Venezuela said on Tuesday it will propose another cut of 1 million bpd at the cartel’s next meeting† (Iran, 2008). Thus, â€Å"investor concerns over further declines in crude oil demand under the impact of the global financial crisis have kept pressing recent oil prices lower† (Iran, 2008). With the drop in gas prices, consum ers are able to purchase more gas based on oil price reduction, income, and inelasticity of gas as a resource. In the Market Structures Simulation, Quasar starts as a leader in the industry with its technology. Quasar has the monopoly on the market at the start of the scenario. After the initial surge of manufacturing and selling the products, Quasar realizes it must invest in advertising and upgrades to production to keep the edge. Orion begins to produce a similar product at a lower price. Quasar must understand that stabilizing the price at this time will create an oligopoly market structure and stabilize the industry. As Quasar adjusts its price accordingly, profits stay steady and Quasar is able to invest in its own branding and innovation once again. As time goes on, we see Quasar move to a perfect competition where inventory is reduced, manufacturing processes are improved, and prices are stable. At this point, Quasar needs to maintain its market share by staying on top while continuing to increase the efficiency of its processes to maximize profits.

Communication in the International Trade Environment

Communication in the International Trade Environment Communication consists of so many dimensions and is a very complex subject. While discussing communication, one has to look at several aspects regarding the subject. You have to identify different skills, components and challenges in the environment of communication, though it doesnt end there. A communication line also goes beyond the borders of your business and stretch to international companies. To successfully trade across international borders, you have to analyse the country and culture of the people whom you are trading with. You have to get a feeling for the way they do business and also for customs or manners that could offend them. People from a different background will feel honoured and will be much more open to business if they can see that you respect their ways. Because of this reason, it is also critical to look at the importance of multicultural communication in international trade. Looking at aspects such as marketing, logistics finance and payment, we discuss the important role that communication plays in todays businesses. 1.1 The importance of communication in the international trade environment To communicate is to live. It plays such a vital role in our daily existence that we can do nothing without it, but just as important as it is in our daily existence, the more so vital it is in the business environment because if the communication lines between your business and those of your partners isnt open and up to standard, it could mean the financial ruin of both entities (RANI). Communication is the successful transition of information through a common system of symbols, signs, behaviours, speech, writing or signals. (ITRISA, 2010:30). To implement successful lines of communication in your business, you have to look at all the components mentioned above. 1.1.1 The components of communication According to ITRISA, communication is made up of three components, each one just as important as the other. We look at verbal, written and non-verbal communication to grasp the importance of this complex subject. Verbal or spoken communication is important because that is the quickest way to portray your ideas and hear other peoples. It also provides room for discussion. On the other hand, it can be very difficult to arrange because of the distances between partners. It is not sufficient as means of communication because people can read just as much in the things you dont say but show. This is known as non-verbal communication and helps when words just arent enough to express yourself. Non-verbal communication is reflected in your body language and this can cause confusion. It is very important to do research before communicating face to face with people from other cultures. Your use of personal space, for example, may be offensive to them. This is a very difficult component to exerc ise and should be regarded as one of the most important factor to consider in the relationship between you and your business partners in a other country. Written communication is a very easy way to communicate less important aspects of a deal but should not be used in midst of a crisis, when problems need to be sorted out quickly and with no misunderstandings. More important decisions regarding the deal should be on paper to insure a permanent record of the agreement between the two parties. In todays corporate environment, electronic communication also takes up a major part of the methods companies use. These are just the main methods of communicating. Numerous other means of communication exists and in the end, companies should decide which method might fulfil their needs best. It should be noted that every method of communication has its own advantages but also disadvantages. The main goal when choosing a method should be the success of the deal. The method which will best fit target should be chosen in the end. Once you understand the critical importance of these components, you can start looking communication in the corporate environment. 1.1.2 Communication in the international corporate environment. Communication between employees of the same company is important. Francis Jock takes it even so far as to say that the skill of communication -or the absence thereof- can cause a business to either be successful or to fail. Let us assumes the lines are already in order. To communicate with people from another corporation tends to be slightly more difficult because other corporations may do business in a whole other way. Business partners from other environments are out of your control and are unpredictable (ITRISA: 2010, 25). A general segmentation of the kind of entities one might have to work with can be private companies, government organisations or foreign entities. For the purpose of this essay, we look particularly at the communication between you and a foreign entity. To make successful business deals, employees administering the deals between businesses of different cultural background need to understand the importance of multicultural communication. (HINNER: 2010) According to Hofstede (2001) culture consists of five dimensions. Each dimension is just as important as the other. The first dimension is uncertainty avoidance. This describes the certain cultures need to point out exact details of the transaction so that the risk of failure is minimised. Another dimension is power distance. This refers to the way people of different positions in community, treats each other. In one culture, people might be treated as exact equals while in other cultures, people in higher positions will not be treated as, say a general worker. Aggressiveness discusses the gap between genders in the business environment. Cultures might also adopt either a long or short term orientation. A Long term orientated culture will typically show casual, laid- back manners in dealings and might not be too hasty in closing a deal while the short term orientated culture will do exactly the opposite. Individualism or collectivism is the last dimension identified by Hostede (2001) . This dimension describes the cultures preferences when it comes to working in groups or as individuals. It is very important to keep these dimensions in mind when dealing with other cultures as this could mean either success or failure. 1.2. The Role communication plays in the International Trade Environment. The role of communication in the international trade environment is so important that many studies have been committed to emphasizing and analysing this role. Models to help companies interpret communication in their daily business environment have been created. Databases, statistics and other information has been collected on this subject (GRIFFITH: 2002). It is difficult to ignore the role of communication. According to ITRISA, communication plays a big role in three main aspects of the general business. A discussion of logistics, marketing, finance and payment, follows. 1.2.1. Logistics Though there are many events that can happen which a company has no control over, the role of human error in logistics are a major problem. Communicating various details about a consignment and its shipping specifications is a major part of the success of the business deal. Employees need to make sure that both ends of the partners understand each other when making decisions about the obligations regarding delivery, the costs each partner is liable to carry and freight insurance. To achieve a clear understanding of the responsibilities of each party, there should be good communication between the importer, exporter, inspection officers, and various banks involved, customs authority in both countries, agents and insurers. 1.2.2. Financing and payment of international trade deals Without funds and the proper management necessary, international trade will not be possible. Before entering in a contract with the other company, you have to make sure that the financing on your side is guaranteed. To acquire this financing, proposals to your financer and motivation behind your proposed deals have to be in order. Only after this, you can commit yourself to a partnership with the foreign company. Once this partnership has been established, the two businesses should communicate so that they will be aware of their exact obligations regarding payment, due dates for this payments, the manner in which funds will be forwarded etc. It is important to verify these details so that the financial risk regarding the deal can be minimised. 1.2.3 Marketing Marketing must be the most essential of the three roles because without marketing, you cannot create a market for your product. Without this market, there would be no demand for your product and therefore, no international trade. A company should communicate with affiliates in other countries, get information from them and get to know their clients. One should be very careful not to offend potential customers and thereby stopping the deal even before it could realise. The absence of communication in marketing had previously led to many business deals gone wrong and it is important to get to know the culture of prospecting clients before trying to sell something to them.

Essay on Fate in Beowulf, Grendel, and Macbeth -- comparison compare c

Fate in Beowulf, Grendel, and Macbeth      Ã‚  Ã‚  Ã‚  Ã‚   Fate plays a significant role in the Old English epic poem Beowulf and William Shakespeare's play Macbeth.. The major events of the poem, such as the three killings by Beowulf and his own death, are said to have been predestined. In Macbeth, fate is so significant that it is personified by the Weird Sisters, who drive the action of the play. But if predestination exists, then there must be an agent that determines destiny. In Beowulf, God plays this role, and fate is generally accepted as God's will. In John Gardner's Grendel, a novel which serves as a commentary on the poem, fate is totally predetermined, and is the will of no being. By contrast, Macbeth's agents of fate are the Witches, who generally go against God's will.    In all three works, fate plays a powerful role, as it did in many prescientific cultures. Fate is a necessary element in these people's lives so that they can have some means of justifying aspects of their existence. However, the fatal agents in the works differ; in looking at this, one must keep in mind that the three works were written in vastly different time periods, for different audiences, and for different purposes. Beowulf was intended to convert people to Christianity. It cannot be a true story, since it takes place in the sixth century (Raffel, 150), four centuries before Christianity came to Scandinavia. (Creed, 141) Most scholars agree that it was written by a Christian, in order to show how the belief in God can overcome evil. Shakespeare wrote Macbeth in 1606 for a Christian audience, perhaps in an attempt to impress the new king, James I. Since King James was an expert on witchcraft, Shakespeare gave the Witches a significant role in ... ...t P. and Stanley B. Greenfield, Old English Poetry: Fifteen Essays, Providence, RI: Brown University Press, 1967 Epstein, Norrie. The Friendly Shakepeare, New York, Viking Publishing, 1993. Demmick, Donald. "Alienation and the Process of Individuation." http://www.nautis@arches.uga.edu (16 February 1997). Gardner, John. Grendel. 1971; rpt. New York: Vintage Books, 1989. Raffel, Burton. and Alexandra H. Olsen Poems and Prose from the Old English, (Yale University Press)Robert Bjork and John Niles, A Beowulf Handbook (University of Nebraska Press) Schucking, Levin L. "The Ideal of Kingship in Beowulf." In An Anthology of Beowulf Criticism, edited by Lewis E. Nicholson. Notre Dame, IN: University of Notre Dame Press, 1963. Shakespeare, William.   Tragedy of Macbeth . Ed. Barbara Mowat and Paul  Ã‚   Warstine. New York: Washington Press, 1992.  Ã‚  Ã‚   Essay on Fate in Beowulf, Grendel, and Macbeth -- comparison compare c Fate in Beowulf, Grendel, and Macbeth      Ã‚  Ã‚  Ã‚  Ã‚   Fate plays a significant role in the Old English epic poem Beowulf and William Shakespeare's play Macbeth.. The major events of the poem, such as the three killings by Beowulf and his own death, are said to have been predestined. In Macbeth, fate is so significant that it is personified by the Weird Sisters, who drive the action of the play. But if predestination exists, then there must be an agent that determines destiny. In Beowulf, God plays this role, and fate is generally accepted as God's will. In John Gardner's Grendel, a novel which serves as a commentary on the poem, fate is totally predetermined, and is the will of no being. By contrast, Macbeth's agents of fate are the Witches, who generally go against God's will.    In all three works, fate plays a powerful role, as it did in many prescientific cultures. Fate is a necessary element in these people's lives so that they can have some means of justifying aspects of their existence. However, the fatal agents in the works differ; in looking at this, one must keep in mind that the three works were written in vastly different time periods, for different audiences, and for different purposes. Beowulf was intended to convert people to Christianity. It cannot be a true story, since it takes place in the sixth century (Raffel, 150), four centuries before Christianity came to Scandinavia. (Creed, 141) Most scholars agree that it was written by a Christian, in order to show how the belief in God can overcome evil. Shakespeare wrote Macbeth in 1606 for a Christian audience, perhaps in an attempt to impress the new king, James I. Since King James was an expert on witchcraft, Shakespeare gave the Witches a significant role in ... ...t P. and Stanley B. Greenfield, Old English Poetry: Fifteen Essays, Providence, RI: Brown University Press, 1967 Epstein, Norrie. The Friendly Shakepeare, New York, Viking Publishing, 1993. Demmick, Donald. "Alienation and the Process of Individuation." http://www.nautis@arches.uga.edu (16 February 1997). Gardner, John. Grendel. 1971; rpt. New York: Vintage Books, 1989. Raffel, Burton. and Alexandra H. Olsen Poems and Prose from the Old English, (Yale University Press)Robert Bjork and John Niles, A Beowulf Handbook (University of Nebraska Press) Schucking, Levin L. "The Ideal of Kingship in Beowulf." In An Anthology of Beowulf Criticism, edited by Lewis E. Nicholson. Notre Dame, IN: University of Notre Dame Press, 1963. Shakespeare, William.   Tragedy of Macbeth . Ed. Barbara Mowat and Paul  Ã‚   Warstine. New York: Washington Press, 1992.  Ã‚  Ã‚  

Good Advice is Hard to Find Essay -- Personal Narratives

Good Advice is Hard to Find Advice is something that is very important in my life and in the life of most others. It allows us to ask another person their feelings and experiences about certain situations they have encountered in his/hers lifetime and then attempt use that information to help yourself. Good advice however is hard to come by. My dad has many stories that begin with, â€Å"Well when I was your age†¦Ã¢â‚¬  This is an example of bad advice. It is hard to relate what he experienced to my life, because of the generations of difference. Good advice to me is something that I ask for, and in my past, has come from people who know me extremely well. I agree with most in that good advice can come from anyone, but the best has come from my friends. They know my feelings in general and how I have reacted to certain situations in my past. In general, advice also needs to come from someone I trust and respect. I also tend to listen more closely and see how I can adapt it to my life if the advice has come from someone who is close to me, especially if it is someone who I believe t...

Impact of Christianity On The Roman Culture :: essays research papers

Christianity came into the world approximately two thousand years ago. It was persecuted at first, but atually became the offical religion in 381 A.D. "It is the spiritual force that conquered the Roman Empire; one of the decisive elements in the growth of Western civiliztion (Bunson 9). Throughout history Christianity has played a major role in changing our society into what it is today. "Christianity won the professed allegiance of the overwhelming majority of the population of the Roman Empire and even the support of the Roman State (Latourette 65). Not only did Christianity thrive, but it also succeeded in changing the face of Roman culture. Consider the gladiatorial fights. "The huge Coliseum at Rome seated 50 thousand people and was the scene of many bloody gladiatorial combats and even mock naval battles" (Schoder 108). "Hundreds of thousands of slaves shed their blood in the arena in Rome year after year to satisfy the perverted lust of the Roman mob" (Kennedy 148). "Although many Romans descried these blook-letting contests, there persisted a streak of cruelty in Roman public amusements which can scarcely be comprehended, far less condoned, today (81). The message of Christianity helped changed this aspect of Roman life because it gave worth and significance every life (Kennedy 149). Jesus told the multitudes to "love your neighbor as yourself" (Luke 10:27) He also told the story of the good summaritan to illistrate that any person he came in contact with was his good neighbor (Luke 10:30-37). Christianities message contains the golden rule "do to others as you you have them do to you" (Luke 6-3)."The child of today is loved and adored. But it was not so in pre-Christian times. The Roman father’s power of his child was absolute. "He could expose it to death; he could scourge it, mutilate it, marry it, divorce it, see it as a slave, or kill it to satisfy his own blood lust." Quintillion, a roman writer, said that to kill a man was often held to be a crime, but to kill one’s own children was sometimes considered a beautiful action (Kennedy 149). The message of Christianity gave value to children. Jeasus said "who ever humbles himself like this child is greatest in my kingdom. If anyone causes these little ones who believe in me to sin, it would be better for him to have a large millstone around his neck and be drowned in the Sea (Matt 18:4-6).

Apple Marketing Mix

Marketing Mix is the set of marketing tools that the firm uses to produce the response from its target market. Price, product, place and promotion are the 4 P's that make up a marketing mix. Apple 1. Product – Apple’s key products are the iPhone, iPad, and the Mac line of personal computers. Steve Jobs has always maintained that first and foremost Apple is an industrial manufacturing firm with a mission to create innovative and compelling products that are unmatched in their visual appeal and intuitive nature.For apple, this is the most important P as they have the most of a product can offer and then the three other P’s simply fall after in their place. 2. Price – Apple has always been more worried about their product than their price, but they do have the advantage with its competitors with their previous successes with the iPad and iPhone.They have the leverage in materials, such as touch screens and flash memory, to help them keep the price staying low er than its competitors and it is obvious that Apple won’t be threatened any time soon. 3. Promotion – Apple’s commercials are instantly recognizable as they stick to the simplicity of their design which the layout of their product is featured on a white background, with catchy music playing in the background. Everything is visual, and visually plentiful, but not overpowering as some ads can be.Even their walk-in stores have the same simple design featuring nothing but their products and their own features. 4. Place – Apple has expanded its company to nearly all regions both big and small. Their iPods, iPads, and iPhones are just about any store that sells electronics these days. From hundreds of retail outlets to a great e-commerce website to even an app on their own, Apple’s products are just about as easy to buy as a pair of jeans.

Soft Drinks Sales New Strategies

Sales of soft drinks declined in the US in 2006 for the first time in more than two decades. Many beverages manufacturers became successful in the past and they are still at the top, but they can lose their power unless they do something to reverse the trend. In this article we’ll try to find new ways to help soft drinks manufacturers to face their biggest challenge of the century. To begin with, it would be a good idea to follow a stretching marketing strategy by producing a new line of soft drinks which would have been positioned as healthy and not fattening. Many companies introduced new products of the same line less fattening such as Fanta Zero or Pepsi Light, but consumers identify the brands of these products with fat and unhealthy drinks. However, if these manufacturers created new brands with names like Bio or Nature, a specific market segment would be directly targeted and sales would stop their decline. In addition, soft drinks companies could follow a different promotion strategy so that their products would look more fashionable and more modern. By doing this, companies would compensate their sales decrease in one segment by increasing their market share in another one. New consumers would be the ones who drink something while they are in bars or discos and new competitors would be alcohol drinks companies. This promotion strategy could consist of advertisements which relate soft drinks with nightlife with new slogans like â€Å"Welcome to the Coke side of night†. Furthermore, product placement in James Bond movies would be a great idea. If Bond changed its Martini for a coke many people would start to see soft drinks with different eyes. To conclude, we should remember that classic soft drinks market is still profitable and new strategies should try to avoid damaging classic products image. Also it’s necessary to point out that soft drink manufacturers will never be as powerful as they were before as long as consumers are demanding everyday more sophisticated and concrete products.