Snapple Case Study
Case Analysis: Snapple Steals Share
I. Point of View
This case study examines the critical decisions to be made by Arnold Greenberg, Chief Operating Officer (COO) of Snapple. The point of view of the latter was chosen since his role is increasingly important to the company’s ability to execute its strategy. The chief operating officer’s main concern is to come up with strategies that will drive operational excellence and high performance in the operation of the business. His decisions are very critical to the success or failure of the business. He is also responsible for turning such decisions into actions.
II. Analysis of the Case Situation
Industry Environment
When a single firm became successful in a market wherein there is no competition, the positive profits enjoyed solely by the latter will induce other firms to finally enter on that same industry. Hence, the then dominant firm will have to face competition among the new entrants/firms. In the case of Snapple, after its five-year supremacy on the ready-to-drink iced tea market, it has to face its new giant competitors namely: Coca-cola/Nestea and Pepsi/Lipton
Snapple has captured a large share of the market by attracting health-conscious individuals on 1990s with its preservative-free ecological image and its new twist which offers iced tea on 11 different flavors.
Company Analysis
Marketing
Snapple offers ready-to-drink preservative-free iced tea in 11 different flavors which attracted the health-conscious market. In promoting its product, Snapple does not spend much on expensive advertisements but rather ride on with its competitors’ promotional ads which lead to Snapple’s dilemma, its lack of national recognition. Market distribution of Snapple is in only 51 out of 278 major supermarket chains in the United States. In addition, the ready-to-drink iced tea of Snapple is relatively expensive as compared to its competitors.
I. Point of View
This case study examines the critical decisions to be made by Arnold Greenberg, Chief Operating Officer (COO) of Snapple. The point of view of the latter was chosen since his role is increasingly important to the company’s ability to execute its strategy. The chief operating officer’s main concern is to come up with strategies that will drive operational excellence and high performance in the operation of the business. His decisions are very critical to the success or failure of the business. He is also responsible for turning such decisions into actions.
II. Analysis of the Case Situation
Industry Environment
When a single firm became successful in a market wherein there is no competition, the positive profits enjoyed solely by the latter will induce other firms to finally enter on that same industry. Hence, the then dominant firm will have to face competition among the new entrants/firms. In the case of Snapple, after its five-year supremacy on the ready-to-drink iced tea market, it has to face its new giant competitors namely: Coca-cola/Nestea and Pepsi/Lipton
Snapple has captured a large share of the market by attracting health-conscious individuals on 1990s with its preservative-free ecological image and its new twist which offers iced tea on 11 different flavors.
Company Analysis
Marketing
Snapple offers ready-to-drink preservative-free iced tea in 11 different flavors which attracted the health-conscious market. In promoting its product, Snapple does not spend much on expensive advertisements but rather ride on with its competitors’ promotional ads which lead to Snapple’s dilemma, its lack of national recognition. Market distribution of Snapple is in only 51 out of 278 major supermarket chains in the United States. In addition, the ready-to-drink iced tea of Snapple is relatively expensive as compared to its competitors.