Dr Pepper Analysis

Topics: Coca-Cola, Soft drink, PepsiCo Pages: 4 (944 words) Published: December 9, 2011
Five Porter Forces
Coca Dr. Pepper Snapple Group

substitues: Pepsi, Sierra Mist, Mountain Dew, Gatorade, Dole juices, Tropicana Juices, Sobe Drinks, Competitor Rivalry: Pepsico, Nestle, Coca-Cola
New Entrants: very few, since Coca-Cola has expanded into different kinds of softdrinks, as well as energy drinks and fruit juices as well, making it difficult for new companies to make profits if they choose to enter the beverage industry. Buyers: Individuals, companies, schools, restaurants

Bargaining power: low, since Coke supplies a numerous variety of products buyers do not have a huge impact on pricing and quantity. Also, customers develop brand loyalty to Coke, thereby making it difficult for buyers to affect prices and quanities as well. Suppliers: fastfood restaurants, vending machines, school campuses. Bargaining power: very high, since companies can easily provide Pepsi products which serve as excellent substitutes. Compliments: pizza, burgers, hot dogs, chips, etc


Concentrated in North America (US, Canada, Mexico), where almost 70% of revenues come from Health Craze will hurt soft drink sales
Acquisitions & alliances
Bottled water growth
Hispanic growth in the US and Pepsi's ability to meet their tastes with current product lines (i.e., Sabritas chips) Growth in emerging markets
Growing consumer health consciousness will help Pepsi as it is already a leader in non-carbonated drinks with brands Gatorade, Aquafina, Lipton; and also with healthy food brands such as Quaker oats. Threats

Declining economy/recession
Sluggish growth of carbonated drinks
Coca-Cola & other smaller, more nimble operators
Commodity price increases, fluctuating oil prices effect production and distribution (gas, plastic) IV) SWOT analysis of PEPSICO
Swot consists of examining the current activities of the organization: its strengths and weaknesses, and then using this and external research data to set out the...
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