Management and Organizational Studies 4410A/B Lecture 2: Lecture 2

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 4410A/B
• Professor: Raymond Leduc

Document Summary

Lecture 2 guide to case analysis evaluate, industry. Attractive industries ability to make profits within these industries make it attractive: easy to make profit in attractive industry, unattractive industry hard to profit. Competitive rivalry in marketplace very strong between coke and pepsi. Threat of new substitutes strong: alternatives to soft drinks, health conscious market, substitute does the same thing but a different product does so, coke not a substitute of pepsi it is a rival. Low threat of new entrants and low bargaining power of suppliers very attractive aspects of industry to pepsico: do not have to worry about suppliers, can replace easily, keep costs low, low threat of new entrants. At best in maturity, but likely in decline. Growth stage different emphasis, promote for broader audiences, broaden distribution. Maturity stage differentiate product, lower pricing, more intensive distribution, promotion emphasizing differentiation (coke zero, etc. )