Kamis, 21 Februari 2013

General Enviroment, Enviormental Scanning and Porter's Five Forces of iIdustry Competition

For Pepsi Company there are several things to think about in the general environment of the business. For instance, with the nation and the world being so focused on the health of the population there might be less people buying Pepsi soda when you think of the demographic group of 16-30. Then on the other side with people older than the 30 who grew up drinking soda they might be less prone to trade out a healthier option for the soda. There are also a couple other things to take into consideration. When it comes to the sociocultural part of the general environment there will be some problems with the people focusing on the health aspect of the products that Pepsi offers. They might be less prone to buy pop and maybe more prone to buying a water or juice in which Pepsi also has products in. I believe they have to focus on pointing out that pop maybe isn’t as unhealthy as everyone makes it out to be. I couldn’t find anything that went with the legal or political side of the spectrum. Technology could be improved to have a better turn out on any of the parts of bottling or production of the many products that Pepsi sells. Thinking about the economical setting of the general environment the rise in minimum wage will have an impact on Pepsi because that will drive cost of making and distributing the products to go up which will in turn raise prices which will maybe put more people on the fence about buying the products all together.

Then there is external scanning which could be the watching of other pop and juice products producers and trying to determine the changes before they happen. This would be like watching Coke products and tracking the trends as they occur. This can help keep the firm with a competitive advantage. Last but not least let’s talk about porter’s five forces model. With much consideration and review it does not seem like there is a potential for new entrants just because Pepsi is a huge company and trying to compete with Pepsi and Coke products may be difficult with both their vast amount of products.  With looking at all the information don’t think they have bargaining power of buyers either.  But people could definitely have substitutes for Pepsi such as coke or other products in the market.

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