Question

if pepsi has been shipping direct to walmarts warehouse all along, why aren't its bottlers upset?

if pepsi has been shipping direct to walmarts warehouse all along, why aren't its bottlers upset?

Homework Answers

Answer #1

These bottlers should raise their issues and concern with Pepsi management and ask to protect their future business relationships. As this Wal-Mart plan will definitely negatively influence their business. They should try to increase their market reach with more benefits offerings than Wal-Mart’s offerings. They should negotiate for increased profit margin to compensate the loss due to such activities of Pepsi and Wal-Mart. Any possibility of loss to bottlers profit and market share must be brought against the Pepsi's board and ask for a mutual beneficial resolution. It will be better to take some control mechanism related to refill of bottling and cut the production rate. It might influence the Pepsi’s such decisions.

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