Pepsico: Alternative Beverage Market Case

Strategic Management E-Case: Alternative Beverage Market analytic thinking of the Global Specialty Beverage Industry The industry in which PepsiCo produces and distributes its strong point beverages is vast and ever changing. With gross sales of carbonated soft drinks declining the erstwhile(prenominal) five years in a row, PepsiCo needed to seek elsewhere to stimulate growth in its core business. PepsiCo estimation it had found this growth in the alternative beverage industry. Pepsi grow its line of beverage to include brands such as Gatorade, Propel, Frappucino, Aquafina, and SoBe. The industry, which see massive growth in the mid 2000s, has seen a more than recent decline in sales of 12.3% for its durability beverage segment between 2008 and 2009. This decline in sales is largely attributed to the economic climate of the United States, where consumers are constraining spending on specialty goods that may not be deemed necessity. This saucily market seemed an attractive choice to stabilize PepsiCo with its tribute pricing points and high profit margin, however Pepsi wasnt the altogether company with this attractive new market in its sights. Coca-Cola, inflamed Bull, 5-hour Energy, and many other companies looked to gobble up percentages of this market as they could.

Five Forces Analysis PepsiCo operates in a market with low barriers to new entry, driving free-enterprise(a) pressures from its competitor up. Many new companies apply enters the specialty beverage market and taken a satisfying chunk of market share. An example would be Five Hour Energy, which in 2009 held an 85% share of the energy shot market. The competitive pressure stemming from supplier bargaining power varies greatly in the industry. Some supplier categories such as manufacturers of aluminum cans, credit card bottles and caps, and most particularly labels and packaging, have many different suppliers, sparking competition amongst them for Pepsis business. However in other areas, such as supplements like taurine, suppliers have... If you want to get a full essay, erect it on our website: Orderessay

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