Executive Summary - Dpsg Analysis

EXECUTIVE SUMMARY

This report was developed to analyze how various external and internal factors contribute to the creation and maintenance of Dr. Pepper Snapple Group's (DPGS) competitive advantage. The examination of factors such as demography, economy, ecology, technology, culture, and politics allows for a thorough understanding of DPSG's strengths and opportunities, as well as the identification of risks and weaknesses that are present and directly or indirectly affect the company.

The continuously changing consumer demography directly impacts the company as a whole, affecting DPSG's marketing strategies tremendously. As a result, DPSG has created products to satisfy the needs of these varying target markets. The company aims for market shares in the carbon soft drinks (CSD) category, as well as the non-carbonated soft drink market and the ready-to-drink tea and juice categories. DPSG has evolved their marketing focuses to be better aligned with that of the new generation of consumers that are much more health-conscious, want more information, and are more interested in companies that are actively involved in their communities. DPSG, however, faces the challenge of growing into more international markets and growing a larger market share among it's main competitors, Coca Cola and PepsiCo.

Based on the report's findings the following strengths, weaknesses, opportunities and threats were identified for Dr. Pepper Snapple Group:

Strengths & Opportunities:

* Strong portfolio of leading, consumer-preferred brands.

* Significantly smaller workforce.

* Fostering of corporate culture.

* Acquirement or building of more bottling companies

* Capitalizing on the energy-drink market.

Weaknesses & Threats:

* Company size in comparison to its competitors

* Financial credibility

* Lack in competitive research and development and innovation

* Increasing awareness towards a more health-conscious lifestyle

* Lack of large bottling and distribution network

* Dependence on large retailers for a significant portion of sales

After considering the SWOT analysis findings, it was determined that Dr. Pepper Snapple Group's competitive advantage was found in its relatively small, flexible business model. In comparison to its main competitors, DPSG is better able to adapt to market changes and differences in consumer preferences due to its relatively smaller workforce and favorable