Contents
Introduction........................................................................................................................2
Company
... [Show More] Analysis.............................................................................................................2
SWOT.............................................................................................................................2
Strengths.....................................................................................................................2
Weaknesses................................................................................................................3
Opportunities...............................................................................................................4
Threats........................................................................................................................4
PEST..............................................................................................................................4
Political........................................................................................................................4
Economic.....................................................................................................................5
Social...........................................................................................................................5
Technological..............................................................................................................5
Porter’s Five Forces.......................................................................................................5
Buyer Power................................................................................................................5
Supplier Power............................................................................................................6
Competitors.................................................................................................................6
Threat of New Entrants...............................................................................................7
Threat of Substitution..................................................................................................7
Case Analysis....................................................................................................................8
General Concerns from the Case Study........................................................................8
Other Assumptions and Decisions..............................................................................9
Project Analysis..............................................................................................................9
Sensitivity..................................................................................................................10
Potential Alternatives....................................................................................................10
References.......................................................................................................................13
Introduction
Roberto Ortega founded the company called Bebida Sol in 1988. Bebida Sol is a
privately owned soft drink company based in Puebla, Mexico. Bebida Sol’s target
market is directed towards the middle to lower-income families, serving lower priced soft
drinks. Bebida Sol primarily sells their soda in smaller independent grocery stores and
convenience stores to reach their target market. They stay away from supermarkets
because they cannot meet the demand and cannot sustain the lower margins that the
larger soda companies can. This strategy has made them very successful. Sales have
increased from 80 million pesos in 1998 to 900 million pesos in 2011. The economic
downturn due to the global crisis benefited the company and its sales increased by 60
% from 2008 to 2009. The economic downturn changed consumer buying habits by
making them more price-conscious. Also, the company’s rate of return on sales had
increased in the 2009-2011 period. [Show Less]