Dr Pepper Snapple Group 2011: Fighting to Prosper in a Highly Competitive Market
“Dr Pepper Snapple Group 2011: Fighting to Prosper in a Highly Competitive Market”Please respond to the following:
The case study outlines six specific strategies that the firm has chosen to support its strategic direction. Determine which strategy is most likely to benefit the firm. Explain your rationale.
The case study, “Dr Pepper Snapple Group 2011: Figthing to prosper in a highly Competitive Market”, out lines strategies that the firm chose to support its strategic direction. The firm’s outlined by the firm are to:
Build and enhance leading brands
Focus on opportunities in high growth and high margin categories
Increase presence in high margin categories
Leverage its integrated business model
Strengthen its distribution channels through acquisitions
Improve operating efficiency
Of the strategies above, that which is likely to benefit the firm is the strategy to strengthen its distribution channels through acquisitions. Through acquisition, the firm will be able to able to have its products available to a large number of people. The large market will be reached. More people will be aware of the products and thus the sales revenue will be increased. The demand and supply curve will be harmonized. The customers demand for the product will be met as there will be enough supply to meet the demand (Dr Pepper Snapple Group, 2011).
Briefly outline at least one other strategy the firm could take to support its strategic direction. Illustrate why this new strategy would be successful.
The other strategy that the firm could take so as to support its strategic direction is differentiating the products. That would mean that the customers could be attracted to the differentiated product’s, in comparison to the competitors. That could be without interfering with the firms objectives of increased profits and increasing the shareholders wealth.
Dr Pepper Snapple Group. (2011). Our History. Retrieved from http://www.drpeppersnapplegroup.com/company/history/
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