Soft Drink Industry. Pestel Analysis

Political factors at the time were in favour of this type of business. There were no barriers to entry the industry which contributed to the development of the industry, in contrast, the government was in favour of the development of CSDs (e. g. setting up bottling plants following American troops). However, it also intervened in the market by not allowing one company to become the monopoly of the whole market (by regulating M&A).

Economic conditions might seem quite controversial during the time. The demand for soft drinks in USA was high, indicating the usefulness of such businesses. However, the Great Depression forced the companies to lower their market prices. Such a move might indicate the weakening of the industry, however, this move helped to gain market share as people started substituting other types of drinks into soft drinks and thus encouraging the growth of the industry.

Social environment can be seen as one of the key factors that contributed to the success of the industry. American people were devoted consumers of CSDs, allowing the companies to experiment and introduce new brands, which again contributed to the well-being of the industry.

The companies also based their production on Technological factors which added to the prosperity of the niche. Starting with improving the recipes for the drink itself, re-organizing the bottling facilities (refranchising), improving the production process, patenting - the industry had place for various technological improvements and innovations. The companies penetrated the fountain outlets, enhanced vending machines which made it easily accessible to the consumers and increasing the demand.

Environmental factors were not emphasized at that time which allowed the companies to substitute the ingredients of the drinks and altering their price and taste.

Finally, Legal factors fostered security of the brands by ensuring that there are no breaches of contracts, patent rights by solving the disputes in courts,...