■ From 1975 to 1995 both Coke and Pepsi achieve average annual growth of around 10% ■ American’s drank more soda than any other beverage ■ Very large market share. More than 50% after the year 1994 (reached the top to 54% in 1998). ■ Average 10.65% net profit in sales for both Pepsi and Coke. ■ The US soft drink market share of Coca Cola Company and PepsiCo Inc. grew from 53.8 % to 74.8% in the year 1966 to 2004. From this fact we can learn that the soft drink industry is dominated by these 2 firms which holding the market power and a competitive fringe with many smaller firms acting as price takers.
Growth platforms and logistic pipeline adopted by Crocs are briefly discussed to highlight the reasons why and how Crocs evolved its supply chain practices. The basic core competencies of Crocs are: effective and responsive supply chain, an unique product, an unique material and a global strategy. First, the most significant Croc’s core competency is the highly effective and responsive supply chain. The company developed a strategic three-step method to shorten time, offer flexibility and lower the cost of the supply chain process. Therefore, It will give bigger profits and an easier operation system.
c. What would you do if you were the decision-maker at Ruhling? If I were the decision-maker at Ruhling I would go with the Epsilon’s proposal. I would go with their proposal/ requirement contract because it is more cost effective. 3. Comment on the practice of dual sourcing when part of the requirement is produce
If the JIT system is adopted, what changes, if any, should occur in the relationships between Ballenger’s firm and his suppliers of components? Discuss. If JIT is adopted, the relation between Balanger (manufacturer) and suppliers of components might be a concern, as suppliers must be considered to be the part of production team as per tenets of JIT. In normal case Balanger used to purchase components from suppliers who usually go out of business and it was more flexible for Balanger. As the suppliers have to provide components of higher quality, the overall costs might increase.
1. Why was the online approach more effective than the traditional one? In my opinion, the heart of advertising is to be able to influence the buyer's decision to buy the product and to be able to recognize the product. I think the reason why online approach becomes more effective than the traditional one because the customer is easy to receive, learn and respond through these advertising and the advertising cost is lower than some traditional advertising too. Moreover, it also helps companies to build some special relationships with customers that are not possible in the other marketing systems such as collecting valuable customer data, product customization, personalized service, and getting the customer involved interactively.
The launching of a new retail concept in the midst of the then gloomy economic environment was certainly risky. Amid other high end beauty marketers struggling during this economic downturn, CVS was poised to try and lure away some of their clientele. Named Beauty 360, the first stores were launched in 2008. This study will analyze the factors and decisions CVS made in deciding to enter this market, and, if these choices proved practical. Introduction CVS Pharmacy is the second largest pharmacy chain in the United States with over 7,000 stores in 41 states and $86 billion in revenue (Prior, 2008).
For this reason, is better to formulate the situation as a strategic problem. We will use the Collaborative Structure Inquire (CSI) and go through the symptoms to identify the main causes (Baer et al. 2012) (See Appendix 1.) After the analysis, we came up with the following problem statement: Optimal management of flexibility without reducing profitability. Value Proposition In order to solve the problem stated in the previous part, we aim at pointing out the value propositions for Spenncon, which could make the company more persuasive to customers.
Do you think Altera’s new strategy will be successful? What are some advantages and disadvantages of the new strategy? Yes, I think their new strategy will be successful, because their new strategy offsets some of the risk associated with carrying too much inventory, since they only build finished products to customer orders and build die banks to stock. The intent of this strategy was to improve visibility into customer information, inventories and build plans, facilitate product development collaboration, and improve Altera’s inventory management. This allows them to reduce safety stock levels and inventory holding costs as well.
• According to Brazilian Market Research Association classification of five social classes, class C accounts for 28% of the total national consumption of soft drinks and these class C people favor price affordability at comparable quality. • Per Capita Consumption of Soft Drink in Brazil is increasing by average rate of 17.37% per year. In year 2003 it was 95.3 liters & projected 104.9 liters in 2008 indicating growth. • As of 2003, the Coca Cola brand (regular and diet) was the leader in the Brazilian soft drink market with 35.6% market share. Second closest was Guarana Antartica with 7.9% market share followed by Fanta with 7.1% market share.