Whim Bill Danna is one of the largest dairy products companies In the European country, Its headquarter Is in Moscow, Russia. Whim Bill Danna produces dairy products, such as milk, yogurt, fruit Juices, and baby food. Currently, WEB has over 30 production sites In different cities; WEB also owns the subsidiary company In other countries. PepsiCo purchased 66% of Whim Bill Danna for 3. 8 billion in 2010, it was one of the largest purchase made in foreign investments. WEB has over 1000 types of yogurt and over 150 types of juices and soft rinks.
WEB had to modernize the suppliers to enhance its production and demand of the products. Threat of New Entrants to the Industry Whim-Bill-Danna Foods is the largest in Russia, because of this reason the organization will have a few competitors that will want to compete with WEB. Example of the top three competitors of WEB is The Coca-Cola Company, Grouper Deanne, and Nestle. The three organizations are famous for its brand around the world and have been around for a very long time, but WEB Is not as well known anywhere else besides the European countries.
WEB has an advantage of doing most f the production without relying on many suppliers Involvement (PepsiCo, 2010). Because the organization has not introduced Its product Internationally It Is becoming a disadvantage to its brand because the competitors have launched its products and not the brands are known by heart. Whim Bill Danna currently competes mostly within the local producers, and each competitor WEB compete with different segments of its products. For example, WEB completes with Grouper Deanne, which is a French organization that also produces in Russia, and promoting its yogurts and some dessert’s products (wackiness, 2009).
It is still difficult for WEB to preferential its products to from the competitors. The organization is looking for ways to produce new products to compete with other products by its competitors. Whim Bill Danna Is the leader in dairy and Juice brands In Russia that rank first among other companies In the same Industry In Russia; the organization Is earning $5 billion In revenue even though the organization’s challenge Is to differentiate from the competitors. The advantage that WEB have is its size of the organization that is twice larger than its competitor in Russia and an unmatched platform for distributing its products (PepsiCo, 2010).
WEB also has production facilities totaling of 49 facilities and this is a growth driver for PepsiCo in Russia, Central Asia, and Ukraine marketplace. The threat of Substitute Products The threat of substitute products for Whim Bill Danna is around raw milk limitation that Russia has in place for the food production. Because WEB focuses on the quality of the products being produces to be an environmental friendly, sometimes a company Is considering other sources to upkeep with the competitors In cost and different methods of the production and this Includes using substitute products such as powdered milk.
WEB number one priority Is the quality of the products and how the products will Impact the environment. The threats are mainly to Improve Its products without using substitute, the competitors like Coca-Cola and Nestle is not Buyers Power PepsiCo is a very large organization that purchased 66% of the Whim Bill Danna, and during this purchase shows that the purchase was the record of foreign investments. Adding WEB to PepsiCo is going to attract many investors and gives WEB a stronger platform in its industry.
Because WEB is a new organization compares to its competitors, the organization is moving to the right direction and it has become a sat growing industry in Russia. Because the market is so strong the buyer’s power is low. WEB business has added value to the global nutrition strategy to provide quality dairy products around the world, the product that is affordable, and brings significant opportunities to the market. Financial result of the transaction with PepsiCo is increase in its earning, approximately 100 million by 2014 (PepsiCo, 2010).
The consumers of WEB products expectation are the to have the same quality that is original, if the product were to taste different or look different the consumers may not be excited about. Because WEB offers the best quality in its products from the start this is what makes the company so successful, if the company was to produce any less quality product there the success the company has will not be the same as before. Example, if a gallon of milk 10 years ago came from fresh milk for the farm was generating revenue to the company. 0 years later it is changed to a combination of fresh milk and substitute powdered milk to reduce the cost of the product, the consumers will notice and will no longer purchase that product. Supplier Power Whim Bill Danna works with suppliers that have uniqueness in the product because WEB focuses strictly on the quality of the products produced for its consumers. Because WEB is picky when comes to its product’s quality, the organization will have to face an increase in prices with the suppliers, it is mostly non-negotiable.
The organization has its own farm to produce its materials, because of this reason the organization do not have many suppliers and does not have to worry about the cost of manufacturing facilities or general materials. WEB foods are an independent distributor, wholesalers, and sells directly to the supermarkets around Russia there is to many channels for the need of the supplier’s involvement (Linked, n. D. ). References Linked. (n. D. ).
