Dr. Pepper Snapple Case
Essay Preview: Dr. Pepper Snapple Case
Report this essay
In relation to DPS opportunities, the international market development strategy would give DPS the chance to capture reasonable market shares in other international markets, particularly the health beverage markets and energy drink markets. The related diversification strategy would allow DPS to introduce one or several products into the growing energy drink market as well as the health beverage market. The joint venture strategy may allow DPS to gain tighter control over distribution networks if a joint venture is made with a bottling company or another company in the distribution channel.
For DPS threats, the international market development strategy would allow DPS to focus on selling healthier drinking products which is a growing trend in international markets. However, DPS will have a difficult time competing in international markets with Coca-Cola and Pepsi Co. By pursuing the related diversification strategy, DPS can produce more products that are “healthy” as viewed by consumer standards. This will allow DPS to capitalize on the growing trend of healthier drinks in local markets. DPS may be able to get some of their healthier products into channels that are regulated such as school campuses. By pursuing the joint venture strategy, DPS may be able to form a joint venture with a bottling company allowing DPS to lower the amount of bottling that Coca-Cola and Pepsi Co do for them.
In relation to DPS strengths, the international market development strategy would allow DPS to test the widely diversified products in international market to determine which products are successful and which arent. With a wide variety of products offered, there will likely be a product that will gain popularity in the international markets. The related diversification strategy would allow DPS to continue use of their diversification strength and diversify with products in markets that are growing such as the energy drink market. Their strength of focusing on upcoming products would be used in the related diversification strategy. The joint venture strategy would compliment DPSs diversified products strength if DPS can form a joint venture with a company that is more efficient than DPS in producing these diversified products. DPS can capitalize on the strengths of other companies through this strategy and can learn as well.
Pertaining to DPS weaknesses, the international market development strategy isnt much help. DPS may be able to catch some international market share of the growing energy drink market if done efficiently. This leads into the related diversification strategy which would give DPS the chance to introduce several products into the local energy drink market so DPS can expand its market share of this growing market. The join venture strategy is attractive to assist DPS weaknesses. By forming a joint venture, DPS may be able to gain better control over distribution.