PepsiCo

Posted: August 26th, 2021

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PepsiCo is among the leading food and beverage companies in the world, complemented through a portfolio of quality brands such as Gatorade. Pepsi-Cola, Tropicana, and Frito-Lay. It is involved in the manufacturing, distribution, marketing and selling of a variety of its enjoyable and convenient beverages(Baldwin& Soudakov, 13). The company achieves these through its operations, authorized manufacturers and contracted distributors to serve consumers in over 200 companies. Thus, the ability to sustain its operations through a distributed network gives the company a competitive advantage within the industry.

Evaluation of the company performance reveals that it has had significant growth in sales and expansion. For instance, in the financial year 2017, the company reported about the US $ 63.525 of sales revenues, coming second only to Nestle S.A (Baldwin& Soudakov, 16). The performance has been achieved through emphasizing the strong product portfolio. In this way, it could sell a wide variety of foods and beverages, reaching the interests of a large pool of consumers(Ferrell, 93). The 2017 sales data reveals that among its diversified brands, about 22 products generated over the US $ 1 billion for the company. At the same time, 10 brands have managed to generate between the US $ 500 and the US $ 1 billion of revenues. The company’s diversification is unmatched in the food and beverage industry(Yofie& Kim, 19). None of its competitors has managed to earn high through brands as PepsiCo. Equally, since most of the competitors rely on a few brands for their revenues, they remain susceptible to changes in the main market products (DePamphilis, 77). PepsiCo is extensively equipped to meet its customer needs because of its successful product diversification. Besides, it still has the capability to introduce another variety of brands. Hence, unlike its competitors, PepsiCo could rarely be affected by changes in customer tastes.

Works Cited

Baldwin, Y., C. & Soudakov, L. PepsiCo’s Bid for Quaker Oats (A). Harvard Business School Publishing Corporation, 2002. Print.

DePamphilis, Donald M. Mergers, Acquisitions, and Other Restructuring Activities (Academic Press advanced finance series. City: Elsevier Science Limited, 2007. Print.

Ferrell, O. C. Marketing strategy. Place of publication not identified: Cengage Learning, 2016. Print.

Muris, Timothy J., David T. Schiffman, and Pablo T. Spiller. Strategy, structure, and antitrust in the carbonated soft-drink industry. Westport, Conn: Quorum Books, 1993. Print.

Yofie, D. B. & Kim, R. Cola Wars Continue Coke and Pepsi in 2010. Harvard Business School, 2010. Print.