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“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
- Build and enhance leading brands.
- Focus on opportunities in high-growth and high- margin categories.
- Increase presence in high-margin channels and packages.
- Leverage the firm’s integrated business model.
- Strengthen the firm’s distribution channels through acquisitions.
- Improve operating efficiency.
Dr Pepper Snapple Group, Inc. is a major beverage company with an integrated business model including brand ownership, bottling, and distribution of nonalcoholic beverages in the United States, Canada, and Mexico. The company’s portfolio includes dozens of brands of flavored (non-cola) carbonated soft drinks and noncarbonated beverages like mixers, juice drinks, and ready-to-drink teas and juices. (Hitt, 2013) The strategy I believe that will benefit the firm in the present and future will be to build and enhance leading brands by having creative ways to keep the consumer interested in the brand products.
Briefly outline at least one other strategy the firm could take to support its strategic direction. Illustrate why this new strategy would be successful.
Strengthen the firm’s distribution channels through acquisitions. By A distribution channel moves products or services from a business to the end user, regardless of whether that end user is a consumer or a business. A distribution channel is made up of a set of independent organizations that work to make a product or service available for sale and use. By doing this you can have your product advertised in different businesses and locations from the headquarters. By increase the efficiency of a distribution channel by maximizing the benefit of channel intermediaries. Intermediaries are the additional companies that take a manufacturer’s product and sell it to a company, such as a distributor or a retailer.
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