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Snnaple Case Study

Autor:   •  May 21, 2017  •  Case Study  •  437 Words (2 Pages)  •  454 Views

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  1. How would you characterize the competitive position of Dr.Pepper Snapple Group, Inc during late 2007? (this is the competitive position analysis) (You must include a detailed discussion of the type of generic business strategy used, the company’s competitive advantage, core competencies, and a SWOT analysis to receive full credit for this question.)

The Generic business strategy being used are focusing on opportunities in High Growth as well as High-Margin Categories. The energy beverage market has been a high growth industry.  It is true that they are slowing down in recent years due to maturity of the market, but growth is still there.

  • Increase Presence in High-Margin Channels – Such as convenience stores, vending machines, and small independent retail outlets.  They also intend to increase the demand for high-margin single serve packages through promotional activity and innovation.
  • Leveraging the Company – New channels or new products.

company’s competitive advantage

core competencies

The beverage industry is a highly competitive one and is constantly developing as well as making changes so they can adequately response to preferences of their consumers. Snapple's competition is based on many factors such as brand recognition, taste, quality, availability, price, and convenience (Dr. Pepper Snapple 10-K, 2010). The non-carbonated beverage business continues to grow and Snapple now has to share shelf space with many other brands. Some of Snapple's key competitors include Napa Naturals, Lipton, Natural Quenchers, Nestea, SoHo, Fruitopia, Arizona, Sobe and Ocean Spray.

S.W.O.T analysis

Strengths

Weakness

  • A robust portfolio of leading and consumer preferred brands.
  • Integrated business model
  • Strong customer relationships
  • Attractive positioning within a large, growing, and profitable market.
  • Broad geographic manufacturing and distribution coverage
  • Solid operating margins and significant, stable cash flow Experienced executive management team
  • Possible strikes
  • Does not have an entire network of bottlers and distributors
  • Benefits cost increases could reduce their profitability
  • Total indebtedness could affect the operations and profitability of the company
  • Not complying with applicable government laws
  • Products not meeting health and safety standards
  • Could probably lose key personnel or could perhaps be unable to recruit qualified personnel

Opportunities

Threats

  • Increased health consciousness
  • Changes in lifestyle
  • Growing demographic segments in the U.S.
  • Volatility in raw material costs
  • New distribution channels
  • Operations in highly competitive markets
  • May not adequately answer to changing consumer preferences, trends and other factors
  • Dependent on a small number of large retailers for a significant portion of their sales
  • Financial results may have a negative influence on certain economic conditions
  • Substantial disruption to production at the manufacturing could occur
  • Costs for raw materials may increase substantially
  • Climate changes could adversely affect the business
  • Changes in accounting standards could have an impact on a report financial results

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