Essay: Pepsi-Keeping Up With the Challenge

Essay: Pepsi-Keeping Up With the Challenge
May 23, 2011 Comments Off on Essay: Pepsi-Keeping Up With the Challenge Academic Papers on Business Studies,Sample Academic Papers admin

Sample Essay

One of the major manufacturers of beverages, snacks and food, PepsiCo stands out to be one of the leading companies in the world. PepsiCo operates in roughly two hundred companies and annually generates revenue of 98 billion dollars. It is the owner of some of the most renowned brands universally and works in diverse product categories. Additionally, PepsiCo also ensures nurturing other renowned brands in varied sectors. It has a varied production channel through which it carries out most of its marketing operations. This diversification of product range includes mineral water, soft drinks, tea, coffee, cake mixes, syrups, energy drinks, flour, pasta, juices, concentrated powder drinks etc. How is this company internally operating can be visible from the following analysis.

From the Porter 5 Forces, we can identify the following

  • Rivalry: Pepsi has almost a share of 51% in the market which is solely because of the fact that it was the pioneer in the soft drinks industry and has set up itself with the best available technologies. However when Coke entered the market it found the market to be totally developed, which has positioned Pepsi at a noteworthy disadvantage. Coke however has a significant disadvantage of not entering new markets at a fast pace unlike Pepsi (Gutierrez, 2007).
  • Barriers to Entry: Pepsi does not face very strong barriers to entry and are emerging globally in a better and effective manner. They however might face difficulties due to regulatory and legal policies which in turn will not let them work with the same bottlers as in US (Deichert, Ellenbecker, & Klehr, 2006).

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