Harvard Business School professor Michael Porterdistinguishes between strategic positioning and operational effectiveness. Therefore, changes in customer tastes do not affect the company as severely as they would other companies.
It makes sense - even the best business model is doomed if the leaders of the company fail to properly execute the plan. However, more heavily indebted firms carry more risk for equity holders, and some studies suggest low debt capital structure firms are not regularly outperformed by more highly leveraged peers.
Uncovering and emphasizing these natural associations, brands can begin to carve out and own niche segments of the market. Competitive Advantage Another business consideration for investors is competitive advantage. Corporate Governance Corporate governance describes the policies in place within an organization denoting the relationships and responsibilities between management, directors and stakeholders.
As soon as it was revealed that all the franchisees were losing money, the house of cards collapsed and the company went bankrupt. For our inaugural post, what more appropriate place to begin than with the two most heated rivals in the beverage business: Compares both Facebook and Twitter conversations directed at the brands for the month of April.
Operational effectiveness means a company is better than rivals at similar activities while competitive advantage means a company is performing better than rivals by doing different activities or performing similar activities in different ways. Professor Porter argues that, in general, sustainable competitive advantage gained by: Yet beyond the interaction of the fizzy soda against our palates there is another reaction affecting our tastes.
According to Yahoo Finance, 13 of 25 analysts rate Coca-Cola a buy or better. Do they avoid questions, like politicians, or do they provide forthright answers? At the aggregate level, social media data can uncover or inform brand strategies to narrow in on competitors.
Rather, they made their money from royalty fees and high-interest loans to franchisees. We will now move on to looking at qualitative factors in the environment in which the company operates.
The contention that exists between the two brands is best characterized by the well-known Pepsi Challenge, which asks strangers to sit down blindfolded, try both products, and decide once and for all which is superior.
Coca-Cola scores better than PepsiCo in liquidity analysis, though both companies operate with similar liquidity and neither is particularly risky.Quantitative vs. Qualitative Business Research. There are two major types of data you can collect in market research.
Both can be valuable for different purposes.
Quantitative research is all about numbers. It uses mathematical analysis and data to shed light on. Qualitative research collects information that seeks to describe a topic more than measure it.
Learn the difference between these two forms of data and when you should use them. Quantitative research is designed to collect cold, hard facts. PepsiCo SWOT analysis Strengths. 1. Comprehensive product portfolio with brands serving nearly every niche in the beverage, food and snack industries.
Commencing operations inPepsiCo has become the second largest food and beverage company in the world today. Qualitative analysis is used to illustrate the findings from the qualitative analysis and to make as complete picture as possible of cultural influences on Pepsi web design.
Limitations All these methods, in spite of the fact that they cover a number of issues, cannot show the whole picture. Fundamental analysis seeks to determine the intrinsic value of a company's stock.
But since qualitative factors, by definition, represent aspects of a company's business that are difficult or impossible to quantify, incorporating that kind of information into a pricing evaluation can be quite difficult.
Qualitative Research Pepsi must understand what the attitudes towards its brand are and the cultural influences on purchases in its selected target group of generation Y.
Pepsi will be able to do this through qualitative research in the form of focus groups as this is the best way to .Download