Answer: Keurig Dr Pepper has avoided diseconomies of scale in several ways:
Diversification: Keurig Dr Pepper has diversified its product portfolio, which includes various brands of coffee, tea, juice, and other beverages. By offering a wide range of products, the company can spread its risks and avoid putting all its eggs in one basket. This diversification strategy allows the company to maintain its economies of scale while reducing its dependence on any one product or market.
Technology: Keurig Dr Pepper has invested heavily in technology and innovation, which has allowed it to increase its production efficiency while reducing costs. For example, the company's Keurig coffee machines are designed to make single-serve cups of coffee, which reduces waste and ensures that customers get a fresh cup every time. This technology also allows the company to offer a wider variety of coffee and tea flavors, which can help to attract new customers.
Supply Chain Management: Keurig Dr Pepper has implemented an efficient supply chain management system that enables it to optimize its production and distribution processes. The company uses a just-in-time inventory system that allows it to minimize its inventory levels while ensuring that it can meet customer demand. This system also helps to reduce waste and minimize the cost of holding inventory.
Strategic Partnerships: Keurig Dr Pepper has formed strategic partnerships with other companies in the industry, which has allowed it to leverage their expertise and resources to improve its operations. For example, the company has partnered with Coca-Cola to develop and distribute its products, which has helped it to expand its reach and improve its distribution channels.
By implementing these strategies, Keurig Dr Pepper has been able to maintain its economies of scale while avoiding diseconomies of scale. This has allowed the company to remain competitive in a rapidly changing industry and continue to grow its market share.
Step-by-step explanation: