Gba Case 2 Essay

736 WordsFeb 4, 20133 Pages
1. What 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. Strategically relevant components of the global macro-environment now are more and more people pay attention to the alternative beverages. As forecasts, the dollar value and volume sales of the global market for alternative beverages will keep increase, and in 2014, the dollar value will be 53.5 billion and the volume will be 16.8 billion of liters. Now, Global beverage companies such as Coca-Cola and PepsiCo had relied on such beverages an important part of beverages to sustain volume growth in mature markets where consumers were reducing their consumption of carbonated soft drinks. What’s more, Coca-Cola, PepsiCo and other beverage companies were intent on expanding the market for alternative beverages by introducing energy drinks, sports drinks, and vitamin drinks in more and more emerging international markets. In the USA’s market, the development of the alternative beverages was hit by the lingering economic downturn. Between 2008 and 2009, sales of sports drinks declined by 12.3%, sales of flavored and vitamin-enhanced waters declined by 12.5%. And in 2009, segment sales exceeded sales in 2008 by only 0.2%. The forecasts of the dollar value and volume sales of the U.S. market for alternative beverages showed that although the alternative beverages industry was hit by the economic, the dollar value and volume will keep going up in next few years. Alternative beverages competed on the basis of differentiation from traditional drinks such as carbonated soft drinks or fruit juices and were also positioned within their respective segments on the basis of differentiation. 2. What is competition like in

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