swot analysis essays

swot analysis essays The soft drink industry is highly competitive. Characteristics of the industry include slow growth and maturity, a phase during which weak companies are weeded out of the market by the strongest corporations. In order to stay competitive, soft drink companies must be able to offer their product at a low price. A price that can at least match (or preferably, beat) a competitors price will allow that product to enter into a consumers mental set of possible brands to purchase. Because the pop industry produces a fairly standardized product, competitors in the industry cannot entice the consumer to pay a premium price for its product over another firm. Therefore, the ability to produce soda at a low cost to the company is an extremely important determinant of success. Secondly, the firms brand of soda must be available for consumers to purchase easily. This means that the brand must be on the shelves of stores where most consumers shop for beverages, namely, large grocery stores. Although other channels of distribution are available, once again it is important for the brand to enter into a consumers mental set of possible brands to purchase. The fact that there are no switching costs associated with pop purchases means that consumers will not travel to special distribution points just to purchase a certain brand of soda. Convenience for the consumer is a very important consideration for successful firms in this industry. Of the two aforementioned keys to success in the pop industry, the National Beverage Corporation possesses strengths in one area but may be vulnerable to threats in the other. According to its 10K, it competes by appealing to the quality-price sensitivity factor of the family consumer. It has a low cost structure as compared to its competitors, and this shows in its pricing structure. As well as being able to compete price-wise, National Beverage Corpora...