Customers are loyal to existing brands (Pepsi)

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It takes time and money to build a brand. When companies need to spend resources building a brand, they have fewer resources to compete in the marketplace. These costs positively affect Pepsi. … "Customers are loyal to existing brands (Pepsi)" has a significant impact, so an analyst should put more weight into it. "Customers are loyal to existing brands (Pepsi)" will have a long-term positive impact on the this entity, which adds to its value. This statements will have a short-term negative impact on this entity, which subtracts from its value.

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