Pepsico Strategy

| |PepsiCo | Memo To:Management From:Group 16 Date: 10/13/2009 Re: strategical Analysis of PepsiCo This memo outlines the strategy of Pepsi Co taking into placard the present and future fix of the comp twain. PepsiCo’s strategy has been canvas finished these to a faultls: & whoreson; Five Forces Analysis & diddlysquat; grind Analysis • Five Major Elements Of Strategy • The Current economical Events regard on Their Strategy FIVE FORCES ANALYSIS The lenient throw industry is very(prenominal) profit adequate. However, as a Duopoly since PepsiCo and coca Cola ar the two main firms competing, the marketplace apportion of the rest of the competition is too sma ll to cause any upheaval of pricing or industry structure. There argon many different substitutes for the lenient booze, including beer, water, coffee, etc. But coca Cola and PepsiCo are able to counter this problem through pock equity, advertising and producing the substitutes on their own.

Many different companies procure soft drink products, among which speedy food franchises are the least(prenominal) profitable and convenience stores wipe out to pay the elevatedest prices. most of the raw materials for concentrate production are basic commodities. It would be easy for soft drink companies to rece ive a supplier who is willing to sell these! materials hence the suppliers in the soft drink industry are weak. The barriers to enter this market are high because PepsiCo and Coca Cola have make the bottling companies agree non to take on mod soft drink companies. Moreover, both companies have been able to develop trustworthy customers through brand image. So it is hard for a new soft drink company to enter this industry. (See Fig1) CORE COMPETENCIES AND SWOT ANALYSIS PepsiCo has a core competence of mass production and scattering of bottled...If you indispensability to get a full essay, order it on our website: BestEssayCheap.com

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