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Level Of Energy Drinks Consumption - Research Paper Example

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Food and beverage industry can be considered as the fastest growing industry in the world catering to the needs and demands of millions of people across the globe. The paper "Level Of Energy Drinks Consumption" is aimed to analyze the global and US alternative beverages industry…
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Level Of Energy Drinks Consumption
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Download file to see previous pages Alternative beverages can be defined as beverages other than carbonated drinks mainly available in the form of sports and energy drinks. The market for such drinks has grown rapidly in the last few years especially in the US and European countries.
Within the beverage industry, PepsiCo has been using alternative beverages to counter and respond to the decline in the consumption of carbonated drinks. PepsiCo has expanded its market by foraying into the alternative drink segments along with introducing wide arrays of energy and sports drinks that have been successful in gaining immense popularity among large customers across the globe. The acceptance of energy and sports drinks offered great benefits to the company especially in the form of competitive advantages and rise in the market share and organizational growth. There is no doubt that competition is fierce in the alternative beverages especially when there are loyal customers not willing to shift their focus to other alternative beverages (Bryce and Dyer, 2007). The paper will discuss all these factors in a critical manner that will further help in understanding the industry dynamics and the position of PepsiCo in the alternative beverage industry marked with the immense competition.
This part of the discussion will present an analysis of the five forces in the form of bargaining power of buyers, bargaining power of suppliers, the threat of new entrants, threat of substitutes, and competitive rivalry. Detailed analysis has been presented as follow:
Bargaining Power of Buyers- (Low) - Bargaining power of buyers in the form of the customer is pretty low as they cannot influence the prices of energy and sports drinks. ...Download file to see next pagesRead More
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