Analysis Of PepsiCo

Essay by PaperNerd ContributorUniversity, Master's August 2001

download word file, 2 pages 2.0

Executive Summary For years I have bought PepsiCo products without knowing their background and their position in the industry. After researching and reading about PepsiCo I was surprised on how much information I found on them and what type of company they are. I have analyzed PepsiCo and think they are a well-established company with much strength that makes them such a strong company. Each division is growing in sales and profits each year and two out of the three divisions are the leaders in its market. The leading divisions are Frito-Lay and Tropicana. Pepsi-Cola is the second leading in its industry. By their positions in their industry I think that they have a competitive advantage. Such as their reputation for the company, division and products, brand loyalty, economies of scale and market strategies. These advantages help PepsiCo because while other competitors are trying to establish their products in the market, PepsiCo is developing new ones.

Every successful product that is introduced only makes the company stronger because they add one more product to them that is helping their sales and profits. The recommendations I suggested will definitely help the company out because they will only make them stronger. PepsiCo already invests wisely on the company's they want, but they don't need to invest in all types of company's with products that are well established. As long PepsiCo keeps the focus on the beverage and snack industry and making sure each product they invest in is related then they will not have a problem with choosing unrelated products. As for threats between Pepsi-Cola and Tropicana those can be dealt with by market strategies. PepsiCo already knows the structure on how to strategize so they will be able to come up with a solution to reduce the threat between Pepsi-Cola and...