Cadbury Schweppes' and Dr Peppers' Current Corporate, Business, and Functional Strategies

Global-level Strategies

The involvement of Cadbury Schweppes in the supranational merchandise has proved to be successful. From being an unsuccessful small-scale company in the 1970s, it has ceremonious a foothold in the global market rank third in the soft drink business and top the non-cola producers. This resulted from the companys successful two-fold penetration of the American market. First, large companies have been accustomed licenses to produce its products and to license them to bottlers and distributors. Through this, the company was able to enrol its products to the market at a minimal cost and risk. However, this approach pattern may bring in a potential threat. Coca-Cola, for utilization as a licensee in the American market, having seen that Cadbury Schweppes products are adequate to the changing lifestyle of the population, may copy the manufacturing process and bowdlerize some of them to stay away from patent-related infringement and thus, creating a late product which would closely rival the licensed product. Thus, Cadbury must sign up in preventive measures to secure and prevent the latter bet from happening.

Another mode of entry of the company in the international market is its series of acquisitions of companies such as A&W Brand and Canada Dry. Through this, the company was able to instantly contain a foothold in the market. Its recent acquisition of Dr.



zest/7UP attests that the company is taking serious steps to acquire a larger share of the pie. This move presents mutual benefits to the acquired and acquiring company. In the case of Dr. Pepper, with its merger with Cadbury Schweppes, it can now exploit the international distribution system of Cadbury and as a result, its longed international elaborateness has been remedied.

Corporate-level Strategies

Unlike any other soft drink business, Dr. Pepper/7 Up fully licensed the bottling of its syrups and concentrates...

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