The Technological Development; Strategic Management Of Soft Drink Industries | Discussion

Part 1

Discuss what forces you think are currently in the spotlight and that affect a large number of industries, and why.  That is, think BIG PICTURE and consider such things as unemployment, inflation, political instability, etc.

The technological development is one of the major forces that affect many industries and the development of the economy. The progress of technologies affects consistently the progress of industries and economy. In fact, new technologies do not just boost the development of many industries but also give rise to new industries which emerge due to innovations and changes brought by new technologies. At this point, it is possible to refer to the case of the dot bubble in the late 1990s. Such changes stimulate the fast progress of industries and the world economy. At the same time, they widen the gap between economies because developed economies accelerate their development due to technological innovations, while developing economies suffer from their technological backwardness and growing dependence on developed ones.

The process of globalization is another important factor that affects consistently the development of industries and economies of different countries of the world. Globalization changes many industries and the world economy. Globalization brings free movement of capital, goods and human resources. Globalization eliminates fiscal barriers between countries and stimulates free trade between them. As a result, national economies grow due to the expansion of their markets at the global level.  However, again globalization is two-fold. On the one hand, globalization enhances the position of rich nations, while the poor becomes poorer.

Outsourcing and relocation of the production from developed countries to developing one is both the consequence of globalization and another factor that affects the development of many industries and world economy. This trend is driven by pursues of companies based in developed nations to save costs of production and optimize their performance. In such a way, outsourcing stimulates business activities at the international level.

Part 2

Discuss issues that you think are driving change in the SOFT DRINK industries (manufacturing, distribution, sales, etc.).  Describe what is happening now and why.

Soft drink industries are vulnerable to consistent changes under the impact of multiple issues. In this regard, the supply chain is one of the important issues that affect the development of soft drink industries. The elimination of fiscal barriers and the free movement of goods allows developing international trade of soft drinks and ingredients. Moreover, many companies working in soft drink industries tend to the localization of their production to save costs on transportation. Therefore, they just launch their production in target markets and use local suppliers, instead of transporting drinks between countries or supplying ingredients for long distances. In such a way, the localization is another important that affects the development of soft drink industries along with the change of the supply chain.

Furthermore, companies operating in soft drink industries pay a particular attention to the enhancement of their brand image. Today, brand facilitates the penetration of new markets and enhances competitive position of companies operating in soft drink industries. Renowned companies are in an advantageous position compared to unknown ones. Nevertheless, local or small companies operating in the industry that do not have a renowned brand can take a competitive advantage at the local market due to lower price of their products, while renowned companies invest heavily into their brand imaging and raise prices of their products.

In addition, soft drink industries are dominated by a few major companies, such as Coca Cola Co., for example. The dominant position of a few large companies raises unsurpassable barriers for smaller companies to enter industries and to take a better competitive position. Moreover, a few dominant companies can face a risk of the monopolization of the market, especially in developing countries, where the anti-trust legislation is under-developed compared to developed countries. Therefore, this issue is a risk factor for soft drink industries because monopolization of markets leads to misbalancing of the competition and to the unfair competition.

 

 

The terms offer and acceptance. (2016, May 17). Retrieved from

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016.

[Accessed: March 29, 2024]

freeessays.club (2016) The terms offer and acceptance [Online].
Available at:

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]
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