Information systems competence allows the company to achieve massive cost savings by tracking its orders, sales, inventory levels, and other related information in real time. ii. Large scale of operations: the company is the world’s largest retailer with more than 10,130 stores and over $400 billion in revenue. This large scale of operations allows the company to exercise strong buyer power on suppliers to reduce their prices and practice higher economies of scale by selling at lower prices. iii.
SWOT of Pepsi: Strengths: - PepsiCo and its products have more demands in the market than the competitors. - The reputation and the established name of the company are very strong in the market. - PepsiCo has more brand loyalty of the customers as most of its consumers are from the young generation who have actually more loyalty to the brands. - The price offer by PepsiCo is satisfied its customers. - PepsiCo name is very strong internationally and of course in the internal market.
Red Bull and Monster captures more than 80% of the US market. Along with these, Rockstar is also one of the competitors in the Energy drink industry. Similar to CSD industry, firms entering into the energy drinks industry has to spend lots of money on advertising, marketing and on high fixed costs. Also, Pricing and Output choice of one firm will affect the rivals pricing and output in this industry. Sports drinks and energy drinks are usually chosen for immediate, single-serve consumption and hence, they commanded premium prices and promised better margins than CSDs.
Threat of substitutes is high; coffee could be substituted by other beverages such as tea, juice, water, and sodas. Bargaining power of buyers is also high since Starbucks has become very popular, and because they are maintaining customer satisfaction. The demands on Starbucks’ products are high which implies that the bargaining power of suppliers will also be high. And of course, competition is always available, therefore competition is always high. Starbucks SWOT Analysis In this SWOT analysis, we will examine the strengths, weaknesses, opportunities and threats of Starbucks Corporation.
4.Competition from Pepsico. SWOT ANALYSIS For Pepsico Strengths: 1.Product diversity 2.Extensive distribution channel 3. Successful marketing and advertising campaigns 4.Complementary product sales Weaknesses: 1.Over dependence on wal-mart 2.To low net profit margin 3.Low pricing 4.Much weaker brand awareness and market share in the world beverage market compared to Coca Cola. Opportunities: 1.Growing beverages and snacks consumption in the market 2.Increasing demand for healthy food and beverages 3.snacks consumption growth. 4.Further expansion through acquisitions Threats: 1.Change in consumer tastes 2.Water scarcity 3.Decreasing gross profit margin 4.Legal requirements to disclose negative information on product labels.
They are classified as an oligopoly concentration as the two firms control the vast majority of the market share and therefore requires the two companies to compete on prices as well as non-price related aspects. This can be considered a negative impact on both companies as due to the similarity in their products, price wars are often triggered as consumers will tend to purchase the cheap option. With lowering the prices both PepsiCo and Coca-Cola are losing potential sale revenues and thus profits. Once the price wars come to a stand still, the businesses look for alternative marketing strategies to get an upperhand, such as products. To respond to this rivalry, PepsiCo has recently expanded their beverage line and has now introduced ‘Bubly’ to the American market.
Threat of a substitute product: if the prices of Coca Cola increase consumers may switch over to a cheaper brand such as Pepsi and in this case Pepsi will have the competitive advantage. Intensity of rivalry among competitors: Coca Colas main competition at the moment is Pepsi therefore Pepsi could try and “steal” Coca Colas profits by taking their
Although these brands have already established in the marketplace, the company still needs to have an effective marketing approach to increase the sale of these brands or brands. Accordingly, question mark category means that these products have a low share of a possible high growth market and may become a star product because of the positive response of the customers. The services that fall in star category are is the pay-is Pepsi brands. The star category shows the products with a high share of a gradual growth of market and these products have a tendency to produce high amount of profits. The next category that can be seen in the figure is the cash cows.
Introduction The case study is about the two famous soft drinks Coca-Cola And Pepsi, which have been competing and fighting in order to dominate the market share on the basis of profit level in market segments. There was a major decline in the sale of coke as the consumption began to decline in 2009. There was a major impact on coke which was adversely affected as there were operational delays while Pepsi decided to change the course of action when CSD was reducing they planned to diversify their products. There are flattening growth observed in the carbonated soft drink business in the causing industry, which involves new beverages strategies, which increases profitability. Consumer demand shifts towards the healthier beverage and this makes the focus of marketing approach changes while the personal connection with the brand shows major change and continues to bring the bottling operations to be under the direct control.
The lower end however tends to benefit from the consumption of the higher end. Usually the business or services of the lower end tend to driven by consumption. Hence due to rise in consumption they tend to benefit. The establish brands like Archies Gallery and Florista see a strong business from the occasion. They experience huge profits during these occasions.