Section 1: Identify the Firm’s Core Strategy
* The core strategy for the Dr Pepper Snapple Group (DPS) to produce both carbonated soft drinks and noncarbonated beverages that are tasty and appealing to their range of customers, while making a profit and continually growing. They are able to do this by using some key elements in their business strategy. They focus on building and enhancing their existing leading brands, such as Dr Pepper and their Snapple drinks. They also must focus on opportunities in high growth and high margin categories. They strive to increase their presence in high margin channels and packages. DPS also leverages their integrated business model. They must strengthen their route-to-market through acquisitions. Finally, they are also focusing on improving their operation efficiency.
Section 2: External Analysis (Opportunities & Threats)
* An opportunity DPS has is that they are able to keep strong relationships with their direct customers, which are the distributors and the retailers. With the opportunities to sell their syrups directly to fast food restaurants they are going to be generating a steady profit for many years to come and as food is still a thriving business. * Another opportunity would be that they could hopefully start bottling more of their products in house so that they aren’t giving business to their two main competitors. They could grow the bottling business and start utilizing their own facilities. * A threat for DPS is that when the cost of sugar rises they are negatively affected because they then have to raise their prices and when they do less people are able to buy their products due to the economic state throughout the country. People who are unemployed or making less money due to the cut economic downturn will first cut spending on items that are not needed and they will turn to less expensive drinks. * Another threat is that health and wellness are...