Macro and Micro Environmental Factors

There are many other products to choose in the soft drink market include Pepsi Co product , the different is those products are cheaper than Gatorade * In order to attract more customers, Gatorade has improved its product quality and spent lots of money on advertising. -Selling products Gatorade mostly is the imported product so most distributor afraid that they can’t sell Gatorade because of Gatorade price * Gatorade has increased the supplier’s commission. -Publics:

The customers in the last 1 year with the developing of VN economic has begun to care about their health lately. Many sport center, fitness club, etc… has been opened in the last 15 years. * The big, potential market for energy beverage drink such as Gatorade to grow. As the result, Pepsi has built up many small, convenient store around those places. * Advertising and promoting trough sport events. Gatorade is also focus on McKinsey’s structure include: structure, strategy, and skill, staff, and style, system and share value. + Style: Gatorade is one of the company which have style.

It helps Pepsi too adopted to changes so it can reach and fix it quickly. + Strategy: Improve the sport drink market in VN * Improve both product quality and price * Has an production line in VN with cheap resources and good materials but still guarantee the quality. So as to compete, Pepsi has advertised its product a lot and had various surveys to research what their consumer’s needs and produce healthy products are. Macro environment -Political : VN has been the 150th member of WTO so it has attracted many big investors all over the world.

The government has supported many enterprises and business investments by changing to the international law, this has led to more active business action which the consumers can approach to the local products and costumers can have more choice within all the global products too. * Pepsi Co considered about importing more Gatorade in each trip to reduce to price and earn more revenue or adding no more product. -Technology: Consumers now mostly pay all the products by credit, master or visa card which allows company to narrow the distance between producer and buyer. > It invests not only in one country but open up many branches all over the world and there must be decision whether to use capital for hiring staff, advertising the product, etc…. or not –

Economics environment: The average income of a Vietnamese is affected by inflation and economic ciao. So, the number of selling product s are also decrease. Pepsi has made a decision to having more and more promotion, and held lots of social event to refresh the consumer’s comments about the company to set up a good new one. Environment: The environment issue in VN is becoming more and more serious. This problem is can’t be avoid in developing country. It’s the result of industrialize and modernization. To reduce pollution government has set up a law in order to protect the environment. Even though, Vietnamese’s awareness isn’t as high as other country but the law has been enforced a great punishment to those who pollute the environment. * This make Pepsi spent lots of money in buy new green-facilities , and providing the idea of protecting the nvironment to not only their staff but also their customers. Both help to protect the environment and still promote Pepsi good fame. Bargaining Power of Supplier: the soft drink market in VN and foreign isn’t the exclusive market. Bargaining Power of Consumers: * Industries facing powerful buyers: Distributors have the power to negotiate with the company on price, product quality, as well as marketing policy. * Industries facing weak buyers : have little impact on the market, Each buyers will buy the products with different purposes.

Some bought to sell, others for political purpose . Numbers of require products is too much for the producer to still keeping it product quality. So that, the pressure is heavy too Threat of entry: Gatorade has many competitors. Competition from substitutes: Gatorade should be change product when customer want and need, also price and quality. Competition between firms: Gatorade have many competitor in Vietnam. Gatorade should always pay attention to your competitors.