Problem
Watch the mini case study YouTube video "The Rise And Fall Of Twinkies | Rise And Fall".
Using economic principles discussed thus far:
A. How did Twinkies first develop and become a big hit in its early days? Did they try to build barriers to entry? Identify one barrier they tried to establish.
B. Why did they fail? What was the result of its demand curve? Or was it cost issues? Or both? Identify one relevant determinant of demand.
C. After emerging from Chapter 11 Bankruptcy in 2009, what happened? Did it try to rebranded and fail? Why? Did microeconomic issues, macroeconomic issues, or both, work against its success. Explain.
D. In 2012, Hostess declared it was going to file for bankruptcy again. This time the bankruptcy was a complete liquidation. What happened with Hostess next?
E. How did the new owners of 'Hostess' change the process, the product or the strategies. Did they come up with efficiency opportunities in supply chain, revenue-enhancing tactics, or improved cost-considerations? Identify and explain one example.