Coca-Cola
American multinational beverage corporation.
American multinational beverage corporation. Major case study demonstrating relationship-based territorial defense in the fountain market from 1950-1990. Coca-Cola's graduated escalation approach (account visibility → relationship incentives → exclusive contracts → price wars) followed identical structure to red deer stag behavior.
Defensive investments included: account representatives ($1.6K per account annually), free fountain equipment ($15-50K replacement cost), and promotional support ($5-25K value annually). These mechanisms achieved 1.2% annual switching rate versus 8% for purely contractual relationships. Total fountain defense cost $545M/year against $2.4B gross profit (22.7% defensive intensity) - sustainable for 40+ years.