By:
Karen Galván
Andrea González
Mabel Medrano
Iván Padilla
Jacobo Peralta
“What are PepsiCo’s strategies and how far will those strategies get them?”
- Organizational Structure
- Core Competences
- VRIO
- Competitive Advantages
- Strengths
- Weaknesses
Main Market Trends
Opportunities
Threats
Porter’s Five Forces
PEPSICO
Conclusion
Internal Analysis
- Increased net revenue on the Frito-Lay North America
- high-single-digit goal in the Latin America Foods division
- 1% net income loss in Europe
- double-digit loss, 10%, was seen in PepsiCo Asia
- PepsiCo is still showing potential growth
- PepsiCo Americas Foods
- PepsiCo Americas Beverages
- PepsiCo Europe
- PepsiCo Asia, Middle East & Africa
• Market Research
• Strategic Acquisitions
• International Expansion
• Efficient Information System
Today´s Strategy
Resources Valuable Rare HTI OP CI
Distribution Yes No No Yes CP
Differentiation Yes Yes Yes Yes CA
Advertising Yes Yes Yes Yes CP
Introduction
- Brand Recognition
- Product Differentiation
- Product Diversity
Strategic Choices
• Product diversity
• Extensive distribution channel
• Corporate Social Responsibility
• Competency in mergers and acquisitions
• Marketing and advertising campaigns
• Complementary product sales
• Low pricing
•Low net profit margin
•Increasing demand for healthy food and beverages
1997
External Analysis
1997 and past
- Increase advertising and marketing
- optimization of operating practices and organization
- high-single-digit increase
- increase returns to shareholders
Implementation of acquisition and diversification strategies.
PepsiCo focused on snacks and beverages
- American multinational food and beverage corporation.
- Four Principal business units operated around the world.
- Mergers, aquisitions and brand sales.
- Diet and low-calories products
- Non-carbonated drinks
We live in a fast-pacing society, which doesn't always have time to eat properly
Society nowadays has a tendency of consuming products they don't really need.
2008
Expansion through Acquisitions
Health Demands
Bottled water consumption growth
Beverages and snacks market growth
OPPORTUNITIES
Strategic realingement, the addition of a fourth division in order to improve PepsiCo's performance.
Changes in consumer tastes
Decreasing Profit Margin
Increased competition from Snynder´s
Suppliers
Rivalry
LOW
Low but Strong
Substitutes
LOW
Buyers
Entry
Medium
Five Forces
Suggestions
WORKS CITED
- "SWOT Analysis PepsiCo." Marketing Teacher. N.p.. Web. 2 Dec 2013. <http://www.marketingteacher.com/swot/pepsi-swot.html>.
- "SWOT analysis of Pepsi." Strategis management insight. N.p., 25 Feb 2013. Web. 2 Dec 2013.
- Mangin, stephanie. "Organizational Structure." . N.p., 26 Apr 2013. Web. 2 Dec 2013. <http://smangin.blogspot.mx/2013/04/organizational-structure.html>.
- "PepsiCo Announces Strategic Investments to Drive Growth." PepsiCo. N.p.. Web. 2 Dec 2013. <http://www.pepsico.com/Download/2012_Outlook_Release.pdf>.
- "Quién es PepsiCo." PepsiCoMexico. N.p.. Web. 2 Dec 2013. <http://www.pepsico.com.mx/Who-is-PepsiCo.html>.
- "A Brief Pepsi History." Andy´s Pepsiholic Haven. N.p.. Web. 2 Dec 2013. <http://www.sirpepsi.com/pepsi11.htm>.
- promote “good-for-you” product line, Russian marketing.
- stronger campaigns on other PepsiCo products.
- Focus on the needs of the costumer, as much as focusing on attacking competitors.