Dr. Pepper

Topics: Coca-Cola, Coffee, Drink Pages: 2 (461 words) Published: May 2, 2012
Bargaining Power of Supplier
At this time Dr. Pepper Snapple Inc., is using the same source of supplier as the competitors. By using the same supplier means that DPS have to follow what the competitors such as Coca Cola and Pepsi have done for the worldwide market in particular in US. This may cause costs to grow in the future but the supplier could have the advantages in producing their product by using own distribution and packaging in long term. DPS has the opportunity to expand into international markets and to growth in the Hispanic population.

Bargaining Power of Supplier Threats

Economic stability is a threat that will affect DPS. At this moment of recession, consumers don’t spend money and at the same time prices for natural gas, corn, pulp and other commodities that are necessary for the company increase. Also, health concerns, preferences may affect the industry.

-Substitute Products Opportunities

The company may see the best opportunity in high growth and high margin categories, as well as energy drinks, ready to drink teas, juice drinks and other functional beverages. Positive external trends or changes that may help an organization improve its’ performance.

-Substitute Products Threats

Dr. Pepper Snapple group should be aware on the substitutes product offered by the competitors. The company should maintain an excellent relationship with wholesalers and retailers such as supermarket, convenience store because they are the company promoting and selling the product to the buyer. This is in case if competitors use similar characteristics and taste as DPS, the competitors may possibly dominate the market and eliminate DPS from the industrial market.

-Political-Legal Opportunities

The company will follow all requirements with all laws regarding political contributions. There are surely some states that allow DPS to make political contributions surrounded by specific limits and reporting supplies by using a state beverage...
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