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Alternative Beverage Industry Analysis
Justin Baumgartner

Cover Letter:

To: Mr. Morgan

From: Justin Baumgartner

Re: Environmental and Industry Analysis – Alternative Beverage Market Recommendations for PepsiCo’s strategy in Alternative Beverages

Date: September 19, 2012

Attached you will find my analysis of the alternative beverage markets in 2009. The analysis includes an assessment of the competition in the alternative beverage market using Michael Porter’s Five Competitive Forces framework. I have also identified key drivers for change and key success factors for competing successfully in this market. Using information, I have then provided a set of recommendations for PepsiCo’s future strategy in alternative beverages.

Briefly, my analysis of competition in alternative beverages shows the market to be very competitive. The drivers for change that will influence competition in this industry in the future are technology/globalization and changing in societal concerns, attitudes, and lifestyles. The key success factors that all firms competing in this market must be addressed are product differentiation, size of their organizations, and brand loyalty. This analysis suggests my recommendation to you regarding PepsiCo’s strategy to be brand loyalty, globalization, and product innovation.

I hope you will find this information to be valuable to your firm and I thank you for the opportunity to provide this service.

Alternative Beverage Industry Analysis:

The alternative beverage industry could be described as one of the best and most competitive industries in America. With only three major players in the market, each of the three must be on their toes day in and day out to stay on top of their competition. In this analysis, I am going to go over Porter’s Five Forces, key success factors, and drivers for change in the…...

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