1.Detrich Mateschitz, an Austrian, was a salesperson. He sold the toothpaste for a German company in East Asia. Being tired from the long trips between Germany and East Asia, he noticed that there were energy drinks all over East Asia but no such drinks in the West. He “took” the formula for one of the drinks and adapted it. The formula was for a drink from Thailand named Kating Deng, or red water buffalo. He named his drink Red Bull. He marketed his “Energy Drink “first in Austria and then over much of the rest of Europe. He aimed his advertising at younger people and the drink was a big success. Red Bull came to America in 1997 and by the early 21st century, Red Bull was selling over one billion can a year.
The success of Red Bull has created many imitators (substitutes) who entered the market. At last count, there were over 150 competing products. Coca Cola and Pepsi Cola have created products to compete with Red Bull. Imitators will continue to enter until the economic profits have returned to zero. But in the meantime, Detrich Mateschitz is a billionaire
Red Bull is sold in a competitive market with many substitutes (150) according to the article, yet the brand name Red Bull is often used to describe ALL energy drinks.
Examples of products whose Brand is recognized for the market.
“I need a Band Aid.” bandage
“I’ll have a Coke” used for any cola beverage.
“I’m looking for an iPhone,” meaning any smart phone.
The market then experiences an increase in Demand for the product as shown in Stage #2
What happens next? Define the market state in Stage 2
Analysis of the Market (Stage #2)- What will take place next in the market?
Offer a brief analysis of the changes and be sure to include changes to Price and Quantity
Analysis of the Firm(s)- What will take place next in the firm(s)?
Offer a brief analysis of the changes and be sure to include changes to Price and Quantity
MonopolisticComp.Profit.jpeg
The Monopolistic Competition graph above shows the Red Bull profit when the drink was introduced. As substitutes enter the market, what will be the short run and long run impact to Red Bull?
Sample Solution
Nanoprecipitation is additionally called dissolvable relocation technique or interfacial precipitation strategy [143-148] .It relies upon the precipitation of a preformed polymer from a natural arrangement and the dispersion of the natural dissolvable in the watery stage either in the nearness or nonattendance of a surfactant [143, 149-151]. The fundamental guideline of this method depends on the interfacial affidavit of a polymer after relocation of a semi polar dissolvable, miscible with water, from a lipophilic arrangement. Quick dissemination of the dissolvable into non-dissolvable stage brings about the reduction of interfacial strain between the two stages, which builds the surface territory and causes the development of little beads of natural dissolvable [143, 152]. Nanoprecipitation framework made out of three essential parts: the polymer (manufactured, semi engineered or characteristic), the polymer dissolvable and the non-dissolvable of the polymer. Natural dissolvable (i.e., Ethanol, CH3)2CO, hexane, methylene chloride or dioxane) which is miscible in water and can be effectively evacuated by dissipation is picked as polymer dissolvable. Due to this explanation, CH3)2CO is viewed as the most usually utilized polymer dissolvable in this technique [143,153, 154]. Here and there, it comprises of twofold dissolvable mixes, CH3)2CO with little volume of water [155], mixes of CH3)2CO with ethanol [156-158] and methanol [159]. The polymers normally utilized are biodegradable polyesters, particularly poly (Æ-caprolactone) (PCL) [160-164], polylactide (PLA) [165, 166] and poly (lactide-co-glycolide) (PLGA) [167, 168]. Eudragit [156] can likewise be utilized the same number of different polymers, for example, polyalkylcyanoacrylate (PACA) [169-171]. Normal polymers, for example, allylic starch [172], dextran ester [173], were additionally utilized ,however manufactured polymers have higher immaculateness and preferred reproducibility over common polymers [174]. Then again, a few polymers are PEG copolymerized so as to diminish nanoparticle acknowledgment by the reticular endothelial framework [159].>
Nanoprecipitation is additionally called dissolvable relocation technique or interfacial precipitation strategy [143-148] .It relies upon the precipitation of a preformed polymer from a natural arrangement and the dispersion of the natural dissolvable in the watery stage either in the nearness or nonattendance of a surfactant [143, 149-151]. The fundamental guideline of this method depends on the interfacial affidavit of a polymer after relocation of a semi polar dissolvable, miscible with water, from a lipophilic arrangement. Quick dissemination of the dissolvable into non-dissolvable stage brings about the reduction of interfacial strain between the two stages, which builds the surface territory and causes the development of little beads of natural dissolvable [143, 152]. Nanoprecipitation framework made out of three essential parts: the polymer (manufactured, semi engineered or characteristic), the polymer dissolvable and the non-dissolvable of the polymer. Natural dissolvable (i.e., Ethanol, CH3)2CO, hexane, methylene chloride or dioxane) which is miscible in water and can be effectively evacuated by dissipation is picked as polymer dissolvable. Due to this explanation, CH3)2CO is viewed as the most usually utilized polymer dissolvable in this technique [143,153, 154]. Here and there, it comprises of twofold dissolvable mixes, CH3)2CO with little volume of water [155], mixes of CH3)2CO with ethanol [156-158] and methanol [159]. The polymers normally utilized are biodegradable polyesters, particularly poly (Æ-caprolactone) (PCL) [160-164], polylactide (PLA) [165, 166] and poly (lactide-co-glycolide) (PLGA) [167, 168]. Eudragit [156] can likewise be utilized the same number of different polymers, for example, polyalkylcyanoacrylate (PACA) [169-171]. Normal polymers, for example, allylic starch [172], dextran ester [173], were additionally utilized ,however manufactured polymers have higher immaculateness and preferred reproducibility over common polymers [174]. Then again, a few polymers are PEG copolymerized so as to diminish nanoparticle acknowledgment by the reticular endothelial framework [159].>
