Pepsico Strategy

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

Many different companies debauch soft drink products, among which speedy food franchises are the least profitable and convenience stores wipe out to pay the juicyest prices. roughly of the raw materials for concentrate production are basic commodities. It would be easy for soft drink companie s to receive a provider who is willing to s! ell 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 not to take on mod soft drink companies. Moreover, some(prenominal) 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 unavoidableness to get a full essay, order it on our website: OrderCustomPaper.com

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