Overview
The article “Americans continue to turn away from soft drinks” was published on The Toronto Star on March 31st, 2014 by Candice Choi. The article is primarily focused on America’s sales volume of carbonated soft drinks dropping three percent in 2013. The soft drink business is the largest category in the beverage industry and large companies such as Coke and Pepsi Co. are dramatically affected by the decrease of sales. This decline is also starting to lead loss of sales in other countries such as Canada and England, Australia and more. The reason why the popularity of the soft drinks is beginning to decline is due to the carbonated drinks reputation as a source of empty calories. Public health advocates blame these empty calories as a source of fuel for weight gain. Diet drinks are also facing a loss of sales due to the customer’s fear of the artificial sweeteners and petrifying competition from substitute drinks such as flavoured water, sports drinks and more. Overall, companies such as Coke, Pepsi and Dr. Pepper are determined to bring back sales and have begun to offer alternatives such as flavoured waters, orange juice and energy drinks but soft drinks still continue account for a large portion of their revenue.
The article “Americans continue to turn away from soft drinks” was published on The Toronto Star on March 31st, 2014 by Candice Choi. The article is primarily focused on America’s sales volume of carbonated soft drinks dropping three percent in 2013. The soft drink business is the largest category in the beverage industry and large companies such as Coke and Pepsi Co. are dramatically affected by the decrease of sales. This decline is also starting to lead loss of sales in other countries such as Canada and England, Australia and more. The reason why the popularity of the soft drinks is beginning to decline is due to the carbonated drinks reputation as a source of empty calories. Public health advocates blame these empty calories as a source of fuel for weight gain. Diet drinks are also facing a loss of sales due to the customer’s fear of the artificial sweeteners and petrifying competition from substitute drinks such as flavoured water, sports drinks and more. Overall, companies such as Coke, Pepsi and Dr. Pepper are determined to bring back sales and have begun to offer alternatives such as flavoured waters, orange juice and energy drinks but soft drinks still continue account for a large portion of their revenue.
Business Strand
The soft drink industry has many large companies such as Coke, Pepsi Co., and Dr. Pepper which all offer their product to many different countries around the world and subsequently dominate the market. Nevertheless, these large competitors have been facing a sales slump and ultimately relating back to the global environment for business strand of international business. This is due to the fact that the recent global trend of being healthy and active have taken away the customer’s willingness to buy soft drinks. As soft drinks contribute to weight gain, this product contradicts the recent trend and subsequently decreases profits. All in all, this proves that with international business, it is important to keep up with the latest trends and FAD’s because if they aren’t considered, they can ultimately cause the product to be abandoned and become obsolete.
The soft drink industry has many large companies such as Coke, Pepsi Co., and Dr. Pepper which all offer their product to many different countries around the world and subsequently dominate the market. Nevertheless, these large competitors have been facing a sales slump and ultimately relating back to the global environment for business strand of international business. This is due to the fact that the recent global trend of being healthy and active have taken away the customer’s willingness to buy soft drinks. As soft drinks contribute to weight gain, this product contradicts the recent trend and subsequently decreases profits. All in all, this proves that with international business, it is important to keep up with the latest trends and FAD’s because if they aren’t considered, they can ultimately cause the product to be abandoned and become obsolete.
Opinion
In my opinion, I believe that it is important to continuously check that the product is in touch with the dynamic environment and global trends. As time goes on, FAD’s and trends are substantial to change and when the trend changes, some products may become obsolete. For example, the introduction of purchasing movies online purchasing led Blockbuster out of business. The inability for a business to stay behind the trend can be costly as sales will slowly begin to decrease. Coke Cola is a widely known international brand and though the world is becoming health conscious, I believe that if the company does not begin to offer healthier alternatives, the more company will not only face a major loss in North America but also from several different countries around the world. Global trends have a huge intake of weather the product will be successful or not, and if Coke Cola stops selling their flavoured waters, orange juice and energy drinks and contradicting the trend, they will definitely face a loss of revenue.
In my opinion, I believe that it is important to continuously check that the product is in touch with the dynamic environment and global trends. As time goes on, FAD’s and trends are substantial to change and when the trend changes, some products may become obsolete. For example, the introduction of purchasing movies online purchasing led Blockbuster out of business. The inability for a business to stay behind the trend can be costly as sales will slowly begin to decrease. Coke Cola is a widely known international brand and though the world is becoming health conscious, I believe that if the company does not begin to offer healthier alternatives, the more company will not only face a major loss in North America but also from several different countries around the world. Global trends have a huge intake of weather the product will be successful or not, and if Coke Cola stops selling their flavoured waters, orange juice and energy drinks and contradicting the trend, they will definitely face a loss of revenue.
Choi, Candice . "Americans continue to turn away from soft drinks | Toronto Star." thestar.com. The Toronto Star , 31 Mar. 2014. Web. 28 Apr. 2014. <http://www.thestar.com/business/economy/2014/03/31/american_continue_to_turn_away_from_soft_drinks.html#>