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Economic Oligarchy

Solidify

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Considering there is no marketplace discussion section yet, consider the following a free service of knoweldge.

I'm assuming many marketing Gurus are already aware of the following tactic. Having said that, this topic is directly related to those who aren't familiar with it.

If you're ever looking for methods to effectively advertise or solicit a product or service, you may like to consider this very well-renown identity trick. It's referred to as an economic Oligarchy. I'll be using the example of Coca-Cola and Pepsi.

Pepsi and Coca Cola is the world's biggest example of an economic Oligarchy. While the prevailing belief may be that both distributors are separately owned and strictly competitors, the reality is that they are both owned by the same company. They work together to keep product progression and therefore ensure that any other companies trying to enter the market cannot stay in it, at least for a very long time.

I presumed most people know about this already but when I received a PM from a fellow member, my perception suddenly changed. Less people are aware of this than I thought so I figured I'd demonstrate how the concept of an economic Oligarchy can be initialized for online markets, such as ours.

If you possess a product or advertise a service, be it well-know or not, consider soliciting it on various forums under different identities. For instance, I wouldn't advertise my eBook on Monetizing Forums under the same username as that of Hack Forums. I'd choose another to advertise my product and by doing so, I'm creating my own competition but under several identities.

This is something I picked up several semesters ago in college before I transferred out of my Business program. I hope some of you learned something new today and consider using it to your advantage.
 

Vanquish

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Wow, a great read.
I never knew about Pepsi and Coca Cola being one company, but that's genious.
 

Solidify

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Echoes said:
Wow, a great read.
I never knew about Pepsi and Coca Cola being one company, but that's genious.

It's all business lol a lot of companies do it.
 

Solidify

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I found another example for those that live in the UK. In the UK, all washing powder is made by one of two companies; Lever Brothers and Proctor and Gamble. They share information to ensure they keep they're 50/50 share of the market. I can easily invision Pepsi and Coca Cola doing the same.
 

Amped-

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This was interesting and something I did not know. Thanks for the share.
 

Mc. Donalds

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If you didn't know Pepsi and Coca-Cola were the same company, then lol.

Mars also owns Pedigree (Dog food, etc), Galaxy, Maltesers.

They're all one massive corporation.
 

Multiply

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Really interesting :) You should make more guides on this kind of thing. :)
 

Solidify

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Multiply said:
Really interesting :) You should make more guides on this kind of thing. :)

I'm working on another at the moment and it will be released within the next couple of minutes. Just proofreading it.
 
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Can I ask what trusted source provided you with the information that The Coca Cola Company and and PepsiCo are the same company? To my knowledge this is simply a rumor. Also the coining the economy as an Oligarchy doesn't generally make sense. An oligarchy is a form of government that can influence the economy.
 

Solidify

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wale said:
Can I ask what trusted source provided you with the information that The Coca Cola Company and and PepsiCo are the same company? To my knowledge this is simply a rumor. Also the coining the economy as an Oligarchy doesn't generally make sense. An oligarchy is a form of government that can influence the economy.

I have sources but none are certified and accredited. It's a well-kept secret, that's all. Just the way, if Future Shop doesn't want people to know that they own Best Buy, they're going to spend good money to protect that from getting out.
 

Solidify

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wale said:
Solidify said:
wale said:
,
if Future Shop doesn't want people to know that they own Best Buy, they're going to spend good money to protect that from getting out.

Future shop owns best buy? I thought it was the other way around.

I'm not sure which way it is but you get the idea...
 

Solidify

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wale said:
Yea but thats not a hidden fact. A simple wikipedia of future shop let you know "Type Division of Best Buy"

You're on a web-forum composed of tech-savvy users. Of course you're going to be able to find out but to the common person, they have no clue.
 
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Pepsi and Coca Cola are not the same company, except they do set the price for practically every soft drink out there. (Aside from smaller-name companies) They have the power to set the price because if their competition lowers their prices, Coke and Pepsi can afford to take a small loss and lower their prices far below the competetors, therefore running them out of business. They practically set the price, and smaller companies follow.

But in no way are Pepsi and Coca Cola the same company.
 

Solidify

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420 said:
Pepsi and Coca Cola are not the same company, except they do set the price for practically every soft drink out there. (Aside from smaller-name companies) They have the power to set the price because if their competition lowers their prices, Coke and Pepsi can afford to take a small loss and lower their prices far below the competetors, therefore running them out of business. They practically set the price, and smaller companies follow.

But in no way are Pepsi and Coca Cola the same company.

You're right. They're not the same company. I found some new information;

Pepsi & Coke were bottled at the same factory in her home country (the Pepsi factory).

But that doesn't mean they are owned by the same company. It is possible, however, in some countries that the franchise for both may be owned by the same person/company.

My mistake. For the sake of educating members on the concept of an economic oligarchy, regardless of whether Pepsi and Coca Cola are run by the same company, I'll leave this thread open.
 
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