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Week8 Strayer Part1 Essay

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SWOT analysis
Week 3
July 20, 2015

Business Plan in Non-Alcoholic Beverage Industry

SWOT analysis

              Soft drinks and hot drinks are usually included in the industry of non-alcoholic beverages. The soft drinks are divided into carbonated, non-carbonated water, sweeteners and flavored. The hot drinks consist of tea and coffee. The greatest competitors in this extremely competitive industry are Pepsi Co Inc. and Coca Cola Company. These two companies’ combined hold around 70% shares in the American market. Other than these companies, other competitors are Dr Pepper Snapple Group, Cott Corporation and the Monster beverage Corporation. If we compare these two companies with those of international standing, there are Groupe Danone, Suntory Holdings Limited and Nestle SA (Bailey, 2014).
          The potential in this industry is endless. As countries developing, the purchasing power of the customers is also going up steadily. When a new flavor is introduced, the demand for non-alcoholic drinks in the market increases. This shows that customer’s needs are always changing. When these needs change and the disposable income increases, the demand for non-alcoholic beverages also increases. Further, the economy of a country and the purchasing power go hand in hand and has a great impact on this industry. The two largest markets for this industry are North America and Asia Pacific. In North America, the United States is the largest consumer of non-alcoholic beverages. But due to health concerns, the demand has dropped recently, especially amongst the younger generation. By introducing diet drinks and zero-sugar drinks, even the consumers who have obesity concerns can also have such beverages. This turns the table and shows that the growth of this market in North America will be steady in the coming years.  
Strategic position
            The new company in the market, Arcadian Drinks is well established in the already established market in North...

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