What Are the Strategically Relevant Components of the Global and U.S. Beverage Industry Macro-Environment?Essay Preview: What Are the Strategically Relevant Components of the Global and U.S. Beverage Industry Macro-Environment?Report this essayWhat are the strategically relevant components of the global and U.S. beverage industry macro-environment? How do the economic characteristics of the alternative beverage segment of the industry differ from that of other beverage categories? Explain.
Global beverage companies like Coca Cola had relied on those beverages to sustain volume growth in mature markets where consumers were reducing their consumption of soft drinks. These companies wanted to expand the market for alternative beverages by introducing new drinks into emerging markets. Beverage producers made numerous attempts to increase the size of the market for those types of beverages by growing product lines and increasing sales and market share. They were faced with criticism of alternative beverages as presenting health risks or not yielding the advertised results. Rapid growth in the market and premium prices/high margins made the alternative beverage market an important part of beverage company strategy.
The beverage companies that emerged from the Beverage Business
The industry that emerged from the Beverage Business was led by the Beverage Industry. The Beverage Industry did not begin as a private corporation until the 19th century when it was owned by the British Parliament. A number of beverages became part of the national beverage industry, such as the alcohol and tea produced in England and Wales and the fruit drinks manufactured in France and Great Britain. In addition, there were several other products made by producers, manufacturers and retailers who were able to reach higher volumes of consumers without relying on conventional and inexpensive means of distribution or price-based sales. The Beverage Industry also became part of the Beverage Industry’s national brand by creating more “alcoholic beverages” in the United States under the brand name Beverage Company of America, which was marketed to consumers by the Beverage Corporation, and was considered national by the federal Bureau of Alcohol. The new, more drinkable American Beverage Beverage Beverage Brand was the first beverage brand, which was also incorporated into the Beverage Company of America. As the Beverage Brand entered its final years, this category in the Beverage Business opened to a more sophisticated distribution of high-value brands to consumers like Pepsi, Coca-Cola, Bud Energy and Nestle that had no ties to national or global beverage companies or were simply being sold on the black market.
As the industry became more sophisticated, each of the large companies with its own brands expanded their business line portfolios to diversify the company portfolio and to market the beverages product or brand to the new international consumers.
Beverages and Beverage Companies: a View on the Culture of Consumption
Many beverages were made in the domestic market by the Beverage Industry. The Beverage Industry did not create the large quantities of alcohol it had once used in any form. Rather, it employed new methods of distribution, marketing and marketing. However, most of the new “beer-related” beverages would be marketed in their native countries.
The Beverage Industry used its more sophisticated distribution business strategy to increase customer service as well as profit margins which greatly contributed to beverage companies’ success. The Beverage Industry would use their sales pitch to help their customers obtain the products in large quantities, offer more services and to sell more of the product at much lower prices. This strategy did not always work with drinkers. In particular, some alcoholic beverages became popular in the United States, as those beverages became more “alcohol-heavy,” as in higher alcohol content or to increase the drinking frequency and quality. Nevertheless, the Beverage Industry also began producing a number of other beverages, notably its more widely available beverage formula and its less expensive version thereof. The Beverage Industry also began distributing to consumers beverages that were less alcoholic in quality. Those beverages sold in supermarkets were often packaged as well as sold in other major retailers such as American Eagle, Miller Lite and Coors Light. There was little room for error in marketing the beverages or their products.
Cities
The beverage companies that emerged from the Beverage Business
The industry that emerged from the Beverage Business was led by the Beverage Industry. The Beverage Industry did not begin as a private corporation until the 19th century when it was owned by the British Parliament. A number of beverages became part of the national beverage industry, such as the alcohol and tea produced in England and Wales and the fruit drinks manufactured in France and Great Britain. In addition, there were several other products made by producers, manufacturers and retailers who were able to reach higher volumes of consumers without relying on conventional and inexpensive means of distribution or price-based sales. The Beverage Industry also became part of the Beverage Industry’s national brand by creating more “alcoholic beverages” in the United States under the brand name Beverage Company of America, which was marketed to consumers by the Beverage Corporation, and was considered national by the federal Bureau of Alcohol. The new, more drinkable American Beverage Beverage Beverage Brand was the first beverage brand, which was also incorporated into the Beverage Company of America. As the Beverage Brand entered its final years, this category in the Beverage Business opened to a more sophisticated distribution of high-value brands to consumers like Pepsi, Coca-Cola, Bud Energy and Nestle that had no ties to national or global beverage companies or were simply being sold on the black market.
As the industry became more sophisticated, each of the large companies with its own brands expanded their business line portfolios to diversify the company portfolio and to market the beverages product or brand to the new international consumers.
Beverages and Beverage Companies: a View on the Culture of Consumption
Many beverages were made in the domestic market by the Beverage Industry. The Beverage Industry did not create the large quantities of alcohol it had once used in any form. Rather, it employed new methods of distribution, marketing and marketing. However, most of the new “beer-related” beverages would be marketed in their native countries.
The Beverage Industry used its more sophisticated distribution business strategy to increase customer service as well as profit margins which greatly contributed to beverage companies’ success. The Beverage Industry would use their sales pitch to help their customers obtain the products in large quantities, offer more services and to sell more of the product at much lower prices. This strategy did not always work with drinkers. In particular, some alcoholic beverages became popular in the United States, as those beverages became more “alcohol-heavy,” as in higher alcohol content or to increase the drinking frequency and quality. Nevertheless, the Beverage Industry also began producing a number of other beverages, notably its more widely available beverage formula and its less expensive version thereof. The Beverage Industry also began distributing to consumers beverages that were less alcoholic in quality. Those beverages sold in supermarkets were often packaged as well as sold in other major retailers such as American Eagle, Miller Lite and Coors Light. There was little room for error in marketing the beverages or their products.
Cities
The economic characteristic of the alternative beverage segment if the industry is differ from that of other beverage categories. Alternative beverages competed on the basis of differentiation from traditional drinks such as carbonated soft drinks or fruit juices. The market started out with low competition, however that is rapidly changing as many new product lines enter and profit margins will inevitably suffer from the price reduction. The rest of the beverage industry is faced with low profit margins because of high competition and little ability to differentiate products.
What is competition like in the alternative beverage industry? Which of the five competitive forces is strongest? Which is weakest? What competitive forces seem to have the greatest effect on industry attractiveness and the potential profitability of new entrants?
The bargaining power of buyers was considerable. Distributors and retailers had substantial leverage in negotiating pricing and slotting fees with alt beverage producers because of their large purchase sizes. New, low market share brands were most vulnerable to buyer leverage since shelf space is allocated to established brands and is at a premium. The large producers were least vulnerable because they offered a large variety of drinks in stores already.
Supplier bargaining power was weakest. There were many suppliers in for the alt beverage ingredients and they are in constant competition to sell their products. Many of the ingredients are commodity or commodity behaving products.
Competition from substitutes is substantial. There are many substitutes to alt beverages like juice, tea, soft drink, or water.Threat of new entrants was substantial when the market emerged but has reduced significantly with the established beverage producers seizing market share.
Extreme rivalry is the strongest competitive force. The market moves towards imitating the soft