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Dr pepper snapple group inc case study
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The six specific strategies that a firm has chosen to support its strategic decisions are;
• Build and developing well-performing brands.
• Focus on opportunities in high growth and high margin categories.
• Expand presence in high margin channels and packages.
• Leverage its integrated business model.
• Strengthen its distribution channels through acquisitions.
• Improve operating efficiency
The main challenge of Dr. Pepper Snapple group 2011 is competition from established brands: PepsiCo and Coke. Although the individual brands are performing very well they will have to lower costs to increase profitability.
The strategy that is most likely to profit the firm is Leveraging its integrated business model.
Business models is an important
a. Basically, corporation strategy demonstrates a corporation’s overall direction in the light of its general mindset toward growth and the management of its businesses and product portfolios. There are three crucial categories, which are stability, growth, and retrenchment, that involve within corporation strategy. Additionally, business strategy often occurs at the business unit or product level, and it highlights the improvement of the competitive position of a company’s products and service in the particular market segment served by the business unit. Competitive and cooperative strategies are two main categories that match within business strategy. Furthermore, functional strategy is the method that through a functional area to
As part of a generic strategy, companies develop a competitive strategy and complement it with a strategic move to strengthen its competitive position. The strategic options are strategic alliances, collaborative partnership, mergers and acquisition, horizontal and vertical integration, initiate an offensive strategic move, employ defensive strategic move, the internet website strategy, and outsourcing (SNHU, 2016).
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold. Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years. The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks. The possible impact of this factor will be addressed later in the case.
....” When choosing a strategy one must consider how it would benefit the business, an individual, make profits, and most importantly know the competitors and their weaknesses. My chosen strategies have all of these qualities which are vital in any business venture.
The company should acquire more companies in the Asian markets, like India, Pakistan and China and expand in these areas because these markets are still developing. The company has a good chance of growth because the labor of these countries is very cheap. The company can focus on all the strategies mentioned in the strategy alternative part because they can be adopted at the same time. Two of the strategies are related to the marketing campaign and positioning of the company, while the last one focuses on the expansion which should be the global agenda of the company.
History of Coca-Cola started in 1886 when the interest of an Atlanta drug specialist, Dr. John S. Pemberton, drove him to make an unmistakable tasting soda that could be sold at pop wellsprings. He made an enhanced syrup, took it to his neighbourhood drug store, where it was blended with carbonated water and regarded "amazing" by the individuals who tested it. Dr. Pemberton's accomplice and accountant, Straightforward M. Robinson, is credited with naming the drink "Coca‑Cola" and in addition planning the trademarked, particular script, still utilized today.
Both Porter and Miles and Snow’s strategy typologies are based on the concept of strategic equifinality, or the ability for firms to be successful via differing managerial strategies (Hambrick, 2003, p. 116). Porter 's strategy is more generic while Miles and Snow’s is more specific in nature. Porter’s generic strategy typology is based on economic factors centering on the source of a firm’s competitive advantage and the scope of a firm’s target market (González-Benito & Suárez-González, 2010). Porter’s typology emphasizes a firm’s cost, product differentiation or non-differentiation and market focus. When utilizing Porter’s strategy typology, a firm must first decide to target its products toward the mass market versus a market niche or focus. Secondly, a firm will determine if it wishes to minimize costs or differentiate its products with differentiation meaning that firms will most likely forego lower costs (Parnell, 2014, p. 184). This can lead a firm to develop a myriad of strategies between these options. Strategies which may have or not have focus, may or not be differentiated, may or not be low cost or any combination of strategies. In contrast to Porter, Miles and Snow’s typology is more specific in nature.
Business strategy is the means by which firm’s plans to achieve its goals and objectives. It can also be termed as organization long-term planning. The strategy covers periods between 3-5 years and sometimes longer. Businesses use two major types of strategy, general or generic and competitive strategies. The overall strategy involves strategies of growth, globalization and retrenchment. The competitive advantage includes low pricing, product and customer differentiation. We will look at the business strategy used by Marks and Spenser (Cole, 1997). The company is a British multinational located at Westminster London and specializes in clothes and luxurious food products.
When people think of soft drinks, One of two companies comes to mind: Coca-Cola or Pepsi. Both companies dominate the global market in soft drink sales. With such a global presence between the companies, there will be an obvious conflict between the two titans of soft drinks. This is seen almost daily, whether it’s on television, magazines, or billboards; it’s not difficult to find an advertisement for either company. In 2013, Pepsi posted a Halloween advertisement taking a jab at Coca-Cola. It showed a can of Pepsi wearing a cape that looked like a can of Coke. Above that, it said, “We wish you a scary Halloween!” Coca-Cola fired back, posting the same advertisement, but changed the wording, stating, “Everybody wants to be a hero!” The advertisement(s) bring together the uses of logos, ethos, and pathos. Using rhetorical appeals, the image shows humor and promotes both companies in a light-hearted way.
...lopment industry as well as the strengths and weaknesses within the company. The Business Strategy should reflect the main issues that determine the long-term
As the world 's largest manufacturer and distributor of non-alcoholic beverages, Coca-Cola is certainly no stranger to global marketing. Established in the US, Coca-Cola initiated its global expansion in 1919 and now markets to more than 200 countries worldwide. It is one of the most recognizable brands on the planet and also owns a large portfolio of other soft drink brands including Schweppes, Oasis, 5 alive, Kea Oar, Fanta, Lilt, Dr Pepper, Sprite and PowerAde. Despite this, Coca-Cola often struggles to maintain its market share over its main rival PepsiCo in some overseas markets, particularly Asian countries.
The underlying logic of the non-carbonated drinks strategy was to introduce a new brand of drinks into a market that had become more health conscious. As previously mentioned, carbonated drinks or the conventional soft drinks have been increasingly associated and criticized for increase in obesity cases across the globe. Therefore, the introduction of non-carbonated drinks is vital towards addressing the health and nutrition concerns of consumers who continue to search for alternative beverages. The non-carbonated drinks strategy would therefore act as a means for the company to assure its customers that it is sensitive to the emerging health issues and concerns throughout the world.
My focus is on the Coca-Cola Enterprises it is a marketer, producer, and distributor for Western Europe and former bottler of North America
The Beverage Industry is a very mature industry and includes companies that market nonalcoholic beverages and alcoholic items. There is room for growth opportunities but there are very few compared to existing businesses in the sector. Since the growth mainly comes from those already in this industry, many of the companies seek to diversify their offerings to continue to compete. One of the main ways to diversify their offerings is too seek out arrangements or acquisitions that expand their geographic reach, acquire new products, and expand their operations. Both sides of the market nonalcoholic and alcoholic have very sizeable companies that control large parts of the market. These companies are usually more stable and have little to no chance
Additionally, understood the strategy implementation, actions made by firms that carry out the formulated strategy, including strategic controls, organizational design, and leadership. environmental