Dr Pepper/ Seven Up Bottling Group

Case study

There are many other firms from mature industries that are leading examples of
success in managing technological change. For example, the Dr Pepper/ Seven up
bottling group developed the Deja Blue product line. This is the most basic product
imaginable: bottled water. The bottling group has been able to employ technology
to become the low-cost producer in the industry. Each step of the production
process uses all the technology possible to lower costs. Each of these technological
innovations is not radical. For example, they designed the production process to
take out curves in the production line that reduces something as simple as products
falling off the line. Similarly, the production process is such that the machinery that
fills the bottles has ninety different heads that never have to stop. The conveyor
technology when the bottle is full is at a slight angle so the bottles stay upright as
they are placed on pallets. The result is a lower cost production that has
experienced 25% sales growth per year.

1. In what ways is the management of Dr pepper/ Seven up Bottling seeking and

supporting innovation processes within the firm?

2. Do you think their approach is appropriate for their industry and market? Why
or why not?