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Mr

1.0 executive summary
Adult soft drink industry is the fastest growing sectors as there is huge increase in productivity and sales even though it’s a competitive arena companies can survive initiating certain measures such as marketing research and development by this way a new company can distinguish their product from the other competitors and positioning the company in a low risk zone can even be a better strategy for the company to cope the minimum efficiency scale for entering this particular industry is 283.7million litre .all together my assumption is that this is an excellent industry for new players.
2. Speculation based on economies of scale and scope
2.1 economies of scales
Non alcoholic soft drinks industry more profit can be achieved by increasing number of goods produced like fruit juices, carbonated drinks etc so by increasing the number of goods produced companies can lower the average cost per unit by sharing fixed cost.
2.1.1 Research and development
For all companies there is a fixed cost and a portion of this is to Research and development and marketing. Research and development in the field of non alcoholic soft drinks is wide and innovative. To improve the existing products and to come up with new ones which is more natural and healthier as in the case of fruit juice they come up with new ones by mixing the flavours to attract the younger generation new label and catch phrases also part of research.
2.1.2 Marketing
Improving the standard by research can help marketing by advertising their new brands which can improve sales and further growth of the company.
2.1.3 Economies of scope
In adult soft drink industry if there is more than one product for a company common materials like cans bottles can be used for more than one product with different labels it’s also easy for a company having a high reputation to enter into a new business because of their good will e.g. coca cola has variety of product in the market which give...