Energy Drink Competition Analysis

Executive Summary The beverage industry faces high competition amongst the highly established industry players, which also command the global market. The buyer power is relatively average, as consumers do not have immense powers to drive prices lower.Advertising We will write a custom assessment sample on Energy Drink Competition Analysis specifically for you for only $16.05 $11/page Learn More The industry, however, lacks switching costs, which provides consumers with the freedom to determine their drink of choice. New entry threats are low as brand loyalty and brand name are critical factors that help to determine performance. The existing industry players are well established. This requires significant capital for any new entrant to compete with them. The varying political and legal factors that manufacturers put up with in the global arena make it more challenging for business performance. PepsiCo’s critical success factors include attaining c ompetitive edge, expanded product portfolio, as well as strong corporate culture. Health concerns and technological advancements play a major role in driving changes within the beverage industry. Increasing awareness about the health challenges posed by carbonated and other processed drinks is pushing buyers into adopting bottled water as an alternative. PepsiCo should consider sustaining a significant research and development strategy, to enable it to compete effectively with its rivals. The short product life cycle in this industry requires an effective research and development strategy to ensure that new products are availed to the market at the opportune time. Five Forces Analysis of the Industry Buyer Power In general, buyers enjoy an average bargaining power in the industry. While the manufacturers enjoy higher bargaining power for energy drinks, vitamin-enhanced beverages, and sports drinks, the buyers have an equally higher bargaining power in terms of the carbonated soft dr inks.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More There are no switching costs involved, which makes it difficult for industry players to lock in their customers. The non-carbonated drinks are marketed at premium prices, sometimes up to 75% higher than the carbonated soft drinks (Thompson et al., 2013). Supplier Power Suppliers have a low bargaining power in the industry. The industry has numerous suppliers who supply numerous other industry players, which reduces the overall bargaining power. Additionally, some of the industry players, including PepsiCo and Coca-Cola, have elaborately established themselves (Thompson et al., 2013). This gives such firms immense bargaining power over the suppliers. The elaborate establishment of these industry players also affords them the ability to pursue backward integration. Competitive Rivalry There are several large manufacturers in the indus try, who strongly compete in the market with almost similar capabilities. PepsiCo, Coca-Cola, and Red Bull, all have significant market shares in the US and the global market, which makes them great industry rivals (Thompson et al., 2013). All these companies offer products that are equally attractive in the market. Threat of Substitution The threat of substitution is low in the industry. There are fewer alternative drinks that buyers can acquire in place of carbonated drinks and the energy drinks.Advertising We will write a custom assessment sample on Energy Drink Competition Analysis specifically for you for only $16.05 $11/page Learn More Consumers seeking to acquire safely sealed, ready to drink beverages have to make up with products manufactured and processed by the industry players in one way or another (Thompson et al., 2013). Threat of New Entrants The beverage industry faces a low entry threat. The market relies on strong brand names, which re quires a lot of time to establish. Additionally, the leading industry players, including Coca Cola and PespsiCo, have elaborately established their operations and business across the globe (Thompson et al., 2013), which makes it costly for any new industry player to compete with them. Macro Environmental Characteristics Political Factors Soft drinks manufacturers have a global market outreach, which has seen players establish operations in virtually all regions in the world. However, with different regulatory frameworks applied by different countries across the world, the manufacturers endure many challenges. Global politics may also influence the manner in which foreign markets accept PepsiCo products (Hill, Hill Jones, 2008). With PepsiCo originating from America, foreign countries that do not support the American position and interest in the global politics may end up denying the firm access to its markets. Economic Factors The globalization phenomenon has transformed the world into a tiny village, where economic ramifications occurring in one region of the world affect the entire global economy.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The global economic crisis that began in the USA in 2008 spread across all economies in the world, thus slowing down market buying power in virtually all the countries of the world (Thompson et al., 2013). Social Factors A transformation of social lifestyles, especially in the USA, has seen many people consider leading healthier lifestyles than before. With health experts raising concerns about the health implications involved when people consume carbonated and other processed drinks, most people abandoned such drinks (Lawrence, 2002). Instead, people have been moving towards consuming bottled water as a healthier alternative. This poses a great threat to the soft drinks markets, as sales are most likely set to deteriorate. Technological Factors Technology is advancing at a fast pace, which is making it difficult for companies to keep pace with (Hill, Hill Jones, 2008). While adopting new technology is crucial in making operations more effective and thus cutting down on operating c osts, the technology is short-lived is on the other hand short-lived. This forces companies to spend more on acquiring the latest innovations in technology, which ends up driving operation costs higher. Legal Factors Different countries have their own food and drug administration laws, which may differ with those used in the USA, where PepsiCo originates. Such regulations may involve restrictions on alcohol contents in drinks, or restrictions on ingredients used in the manufacture of particular soft drink brands (Thompson et al., 2013). This may in turn force players to drop brands that fail to meet regulations that are applied in particular countries, or manufacture new brands altogether in order to continue serving certain foreign markets. Environmental Factors Businesses are continuously being compelled to ensure that their operations and activities do not pollute the environment. These new requirements are forcing firms to spend more in attempting to achieve environmentally frie ndly practices. Beverage manufacturing companies, for instance, have to ensure that bottles and cans used in packaging their beverages are recyclable to achieve the required environmental standards (Hill, Hill Jones, 2008). These requirements, however, are a challenge to the manufacturers because this is not their core business area. The doubling up of business focus can potentially affect the ability to achieve desired business objectives. Key Success Factors Company Mission PepsiCo’s mission in business is to emerge as the leading consumer products’ manufacturer that focuses on beverages as well as conventional foods in the world. The firm targets to offer investors with financial rewards, while providing growth and enrichment opportunities at the same time. The achievement of honesty, fairness, as well as the integrity remains as PespsiCo’s main target in business (PepsiCo, 2013). Key Success Factors Competitive edge PepsiCo requires enhancing its competitiv eness in as far as the performance of other rival beverage manufacturers is concerned. As a critical player in the fast food industry as well, the firm has to ensure that it builds significant competitive edge with other fast food manufacturers. To emerge as the leading consumer products’ manufacturer, PepsiCo has to look for ways of attracting new customers, which includes pursuing a differentiation strategy. Expanded product portfolio Providing investors with financial rewards, on the other hand, require that the company should expand its product portfolio to increase its profit potential. With more products, the company will reduce its overall business risk. This, in turn, reassures the investors of stable and better returns sustained over longer periods. Strong corporate culture Maintaining high levels of honesty, fairness, and integrity calls for PepsiCo to build a strong corporate culture that will in turn sustain it. This entails training workers on good business pract ice and curbing high turnover rates. Employees must be satisfied always to make them enjoy their roles, and act with honesty and fairness whenever they are transacting company business. Drivers of Change and Industry Dynamics Health Concerns Changing social lifestyles play an influential role in determining industry trends and changes. As consumers began shunning carbonated soft drinks in the mid 2000s, because of rising concerns over the health implications (Lawrence, 2002), a huge market for the energy drinks, vitamin-enhanced beverages, and sports drinks, was created. However, with the huge popularity of these alternative beverages in the recent past, there have been growing health concerns over the dangers of consuming these beverage types. Currently, most consumers have been shifting towards bottled water as a health precaution, which in turn also diminishes the market for the beverages. Technology Advancements in technology are changing the way in which industry players are co nducting operations and business in general (Thompson et al., 2013). As innovations continue to be witnessed, firms are transforming towards full mechanization and total computerization. This is set to increase efficiency and lower the cost of doing business even further. Prices The beverage industry in general is poised to register a rapid increase in prices. This phenomenon is more likely to be registered in the developing world, such as in India and China. As the middle class population surges in these countries, the uptake of carbonated drinks is also likely to increase, thus pushing prices high (Lawrence, 2002). Strategic Group Map Recommendations PepsiCo should consider sustaining a healthy competitive edge in the industry to achieve market leadership. The industry is highly competitive, and the best alternative to remain the leader is to achieve differentiation. An expanded product portfolio is also crucial in cushioning the business from poor market performance and scenario s. With a more expanded portfolio, PepsiCo will achieve higher profits, which will be significant in funding other important business ventures by the organizations. The company must put strategic measures in place to help in supporting research and development activities. With high competition and short periods of product maturity, only an elaborate spending in research and development will ensure that the company avails new and unique products into the market at the opportune time. References Hill, C. W. L., Hill, C. Jones, G. R. (2008). Essentials of strategic management, 2nd edn. Mason, OH: Cengage Learning. Lawrence, P. (2002). The change game: How today’s global trends are shaping tomorrow’s companies. London, UK: Kogan Page. PepsiCo (2013). Our mission values. Web. Thompson, A., Peteraf, M., Gamble, J., Strickland III, A. J. (2013). Crafting executing strategy: the quest for competitive advantage: Concepts and cases. New York, NY: McGraw-Hill Education. This assessment on Energy Drink Competition Analysis was written and submitted by user Jesse Delaney to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. 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How to Look More Stylish At Work to Make a Great First Impression

How to Look More Stylish At Work to Make a Great First Impression It might sound shallow, but you really are judged on what you wear. So often the visual is the first impression that matters most when impressing clients or potential hirers. But even everyday work outfits can be the hardest to plan. Never fear! Here are a few suggestions for how to style your work look to put your best and most professional foot forwards of good textures to try include: leather, cotton, chiffon, silk, satin, and waxy coated fabrics.3. Get a good fit.Next time you’re clothes shopping or pruning back your wardrobe, try the following tricks. Check to see whether you can push your elbows back in a button-down shirt without buckling and gapping (no one at work wants to see your bra), and whether you can wedge a finger space into your waistband. Leave it on the rack if it isn’t special and doesn’t meet this criteria. And, most importantly, avoid anything that isn’t comfortable! And if a few wonderful things don’t fit you to a T- consider alterations.4. Spend more to get more.A few quality pieces can go a really long way. Invest in good examples of the following, and you’ll almost always have a mix-and-match outfit half ready to wear: a pair each of straight leg and skinny leg pants, a patterned knee length skirt, a plain black and plain white tank top underlayer (not too thin, not too strappy), a blazer, a great dress, a pair of multipurpose pumps, and one pair of comfy flats. Supplement with a few trendy things here and there, but don’t break the bank to get them. Try Target or Cue for these instead.5. Jazz it up.Jazz up your classic (or even downright boring) look with a single statement piece fun shoes, a bag, a fabulous necklace, interesting watch, or even lip or nail color. It’s all in the little deets.6. Mix business and casual.Turn a casual looking outfit: feminine top, structured trousers or jeans, jacket, and professional bag into something truly fierce with a pair of killer shoes. The shoes and quality of the bag (and structure/fit of the major pieces of the outfit) will sell it, even make you look relaxed, hypercompetent, and oh-so-chic.7. Go for the careless combo.Mix textures and shapes, fabrics, femme/masculine pieces, fits, etc. Sex up the shoes to sell this- even if that means a really nice pair of oxfords or brogues. Embrace your inner hipster.8. Femme it up.Go ahead and wear your chiffon dresses- just make sure the hem comes to your knees or lower, add a statement piece and/or a jacket or cardigan and a nice pair of shoes, and you can feel free to be your flowy, feminine self- even at work.9. Bring the edge.If you work in a creative field, you have the option of really playing with your textures and pieces and sexing up your wardrobe. Think chunky glasses, statement pieces, and trendy sneakers. The sky’s the limit, as long as you keep consistent with the brand you’re trying to build yourself.

American government 101 Essay Example | Topics and Well Written Essays - 1250 words

American government 101 - Essay Example The survey was conducted from February 28 to March 2 by interviewing some 1,500 adults and the results were then averaged by the pollster which is the Gallup organization. It is a prestigious survey firm, so we can be sure the results are pretty accurate in terms of judging public sentiment about the performance in office by the president. The said survey has a +/-3% margin of error, which is within the usual statistical margin to get valid results. My opinion on the article is that Pres. Obama got blamed for the deadlock in the U.S. Congress because he and the Republican members of Congress could not agree on the ways to reduce the budget deficit and so $85 billion in automatic spending cuts went into effect which has a bad or adverse implication on national security (the military is most affected), domestic investments, and core government functions as the cuts are government-wide (all agencies). It is sad that the legislative and executive branches of the government could not agree on a very important matter but the general public seems to put the blame entirely on the president only, as his disapproval rating surged to a high of 46% since November last year (Slack 1). This article was written by Lois Romano and was first published online last March 4, 2013; it talked about the planned candidacy of famous Hollywood actress Ashley Judd for the state senate of Kentucky. Since it is still being planned, Ms. Judd has not yet declared openly whether she will eventually run or not for an elective political office but this early, she is now being attacked by the opposing Republican Party by questioning some of her public statement or announcements, going back by several years earlier. Although now partially retired from an acting career, she still retained her popularity due to some famous movies she had made and it makes her a viable candidate in the eyes of her Democratic Party