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Coca - low-downOn the 14th of June Coca- green goddess&8217s soft drinks were banned from the commercializes in Belgium and later also in capital of Luxembourg and France. Two failures in the bottling system were the cause for the nausea that the people suffered. harmonise to the article it would construct been better if they would have acted fast and told the whole truth. Coca- genus Cola is in an ologopolistic market and therefore branding plays a great role. It is attainable that the company ha lost market shares, referable to this accident. In the ologopolistic market the firms don&8217t compete with price, but rather with advertising and modern(prenominal) non-price st rollgies. Therefore one can predict that this scandal has shifted the demand tailor to the left. This accident can be seen as a negative externality. The political sympathies should make Coca Cola increase their health controls (internalise their externalities), if scandals of this sort pop off again. They can enforce this by either subsidies (reward) of in this case tax revenue (punishment). People who would usually only buy Coca Cola due to the heavy advertising might try a substitute during the clip of the ban. This can be seen as a sort of free packaging for the separates in the market. According to the zero sum game, the pull back that Coca Cola is making right now is directly proportional to the profits the other firms are making in the respected market. Coca Cola testament need to take further actions to restore their brand name that they have established throughout all these years. This will significantly influences their total added costs. A strong brand has very few goods substitutes and it is very difficult for competitors to challenge the supremacy of the brand. This health scandal might have opened the doors fro new competitors. In the long run this can lead to Coca Cola&8217s costs for advertising to increase or furthermore they could lose control of the mark et and fall into a disequilibrium. The accelerator theory suggests that the direct of planned investments varies with the rate of change of income or output rather than with the rate of interest. It will be hard for the big American company to forgather their expectations of expansion in Europe with no investors being pleased with their progress. dress hat Foot forward at ReebokOn October 18th Reebok published a 41 page report on how it is dealing with its workers in Indonesia.