Pepsico's Case Analysis
PepsiCo’s case analysis
PepsiCo, Inc (PepsiCo) is the second-largest food and refreshment beverage company in the world. It manufactures and sells a variety of snacks and the carbonated beverages such as Doritos, Lays, Pepsi, and Mountain Dew. PepsiCo has succeeded by merging with Frito-Lay, Inc and acquiring Tropicana Products. It seeks to achieve the growth and the long-term value in its operational activities by creating the competitive advantages through new production. The strategic issue in this case is whether PepsiCo should bid for Quaker Oats Company (Quaker Oats) and if so, how to achieve this objective. I will conduct a SWOT analysis to consider their position of the firm.
Strengths: PepsiCo offers a wide variety of products. It means that their products are ranging from soft drinks to snacks. Since they have experienced acquisitions and alliances in the past, they have knowledge how to manage, operate, and succeed them. PepsiCo also has kept strong growth in revenues and profits. The most strength of PepsiCo is that the brand name has well known all over the world.
Weaknesses: PepsiCo has a strong presence in the US, but The Coca-Cola Company, which is a competitor in the beverage field, has a stronger presence and loyalty in the world. Since they have developed by acquisitions and alliances, they lack skills to create the original products.
Opportunities: Food division of PepsiCo has some room to grow and expand internationally. If PepsiCo merges with Quaker Oats, their profits can be increased with the noncarbonated drink and the healthy convenience foods, such as Gatorade, granola bar, and oatmeal.
Threats: Many new competitors entry into the market with low prices and produce the substitutive foods and beverages. In these years, consumers are the focus on their health, so there is a high possibility that they will stop buying the unhealthy snacks and beverages.
There are two recommendations that I approach to advance
PepsiCo, Inc (PepsiCo) is the second-largest food and refreshment beverage company in the world. It manufactures and sells a variety of snacks and the carbonated beverages such as Doritos, Lays, Pepsi, and Mountain Dew. PepsiCo has succeeded by merging with Frito-Lay, Inc and acquiring Tropicana Products. It seeks to achieve the growth and the long-term value in its operational activities by creating the competitive advantages through new production. The strategic issue in this case is whether PepsiCo should bid for Quaker Oats Company (Quaker Oats) and if so, how to achieve this objective. I will conduct a SWOT analysis to consider their position of the firm.
Strengths: PepsiCo offers a wide variety of products. It means that their products are ranging from soft drinks to snacks. Since they have experienced acquisitions and alliances in the past, they have knowledge how to manage, operate, and succeed them. PepsiCo also has kept strong growth in revenues and profits. The most strength of PepsiCo is that the brand name has well known all over the world.
Weaknesses: PepsiCo has a strong presence in the US, but The Coca-Cola Company, which is a competitor in the beverage field, has a stronger presence and loyalty in the world. Since they have developed by acquisitions and alliances, they lack skills to create the original products.
Opportunities: Food division of PepsiCo has some room to grow and expand internationally. If PepsiCo merges with Quaker Oats, their profits can be increased with the noncarbonated drink and the healthy convenience foods, such as Gatorade, granola bar, and oatmeal.
Threats: Many new competitors entry into the market with low prices and produce the substitutive foods and beverages. In these years, consumers are the focus on their health, so there is a high possibility that they will stop buying the unhealthy snacks and beverages.
There are two recommendations that I approach to advance