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Frito-Lay could capitalize on its foothold in the chip dip market and attempt to expand the market share. However the opportunity was less promising because the company is facing a fully saturated market. First, research showed that only 20% of chips were eaten with dips and only 45% of al U.S. households used dips in 1985. Second, increased competitive activity was such that Frito-Lay could only hold but not improve its position. Third, recent sales growth in dips was due to new products (cheese-based dips). Also the new sour cream dip represented a break with Mexican-style dips and cheese dips and was probably more suitable for vegetable dipping...
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