Analysis of the Hong Kong Beverage Market Based on Classical Economic Theory: The Vitasoy Incident

Abstract

Beverage businesses have had to contend with an expanding range of products in recent years as the beverage market has grown more competitive. Against this background, Vitasoy Enterprises has suffered a certain blow in terms of sales. In particular, the Vitasoy incident has led to the company being negatively affected by consumers in the mainland market. After establishing the research objectives, this paper collects relevant information, reads books and literature, and organizes and analyzes them, and chooses to use classical economic theory to explain and analyze the impact of the Vitasoy incident on the company. Classical economic theory suggests that markets should be characterized by transparency and complete information. In addition, classical economic theory also emphasizes the importance of market competition. However, apart from the classical economic theory, there are other economic theories that can be used to explain the impact of the Vitasoy incident. For example, behavioral economics, institutional economics, and new institutional economics. The impact of the Vitasoy incident on the company can be explained through classical economic theory, while also drawing on other economic theories to provide a more comprehensive analysis and recommendations.