Also, Dr Pepper Snapple Group will be able to advise Bai when advertising their products. According to Statista, Dr Pepper Snapple Group’s international revenue accounts for only 10.4% of total net sales. Bai, having so much success in the U.S. will assist Dr Pepper Snapple Group in trying to expand its international market. Dr Pepper Snapple Group purchases Bai for such a large sum of money because they see the potential the product has to expand globally and expand their market.
With incredible success in the United States, we believe that Bai is ready to expand globally. We believe that Bai is ready to go global because Bai is now present in all 50 States and with the still high level of national attention, it is best for Bai to seize this opportunity before another direct competitor arrives. With the recent acquisition by Dr Pepper Snapple Group, Bai will now have the knowledge, resource, and expertise of one of the largest beverage producer in the world to assist in taking it …show more content…
Abe’s economic policy combines fiscal expansion, monetary easing, and structural reforms also known as “Abenomics.” According to McBride and Xu (2017), Abe’s goal for Japan is to “boost demand and GDP while raising inflation to 2 percent”. McBride and Xu goes on to say that “Abe’s structural policies aim to improve the country’s prospects by increasing competition, reforming labor markets, and expanding trade partnerships.” However, there are challenges to Abe’s Abenomics. McBride and Xu points out that “Despite massive government stimulus, growth is tepid, inflation is below target, concerns overing ballooning debt remains, and difficult structural reforms have languished.” With Japan’s national debt at almost two and a half times the size of its economy, Japan plans to increase its consumption tax rate. Consumption tax rate increased from 5 percent to 8 percent in April 1,2014 and was planned to be increased from 8 percent to 10 percent but is delayed till October 2019. According to OECD, the reason for an increase in Japan’s consumption tax was to slow public social spending, which accounts for more than half of government