Pepsicos diversification strategy in 2008
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If it doesn't, restart the download. You can only open this file with Prezi Desktop. Sorry for the inconvenience. If the problem persists you can find support at Community Forum. Product Company Careers Support Community Contact Apps. Houston, we have a problem! Send strategy link below via email or IM Copy. Present to your audience Start remote presentation. Do you really want to delete this prezi? Neither you, nor the coeditors you shared it with will strategy able to recover it diversification. Comments 0 Please log in to add your comment. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity. Vision "PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today. First made in the s, by pharmacist Caleb Bradham in New Bern, North Carolina, the soft drink has wooed millions of people with its flavor. Pepsi made its first appearance in the world in s. Pepsicos CalrbBradham of New Bern, North California, is the man to be credited with diversification production of this drink. The product got its trademark on June 16, Bradham shifted the bottling of the drink from his drugstore to a rented warehouse in the year Since then, the strategy has never looked back. It got its first official logo inwhich was eventually changed in and then again in InPepsi pepsicos introduced to the whole world through its 2008 celebrity endorser, Barney Oldfield. In the yeardue to the disastrous effect of World War I, there was sudden fluctuation in the price of sugar, which led Pepsi-Cola Company into bankruptcy. Pepsi managed to stand once again, against the pressures of the Great Depression. Inounce bottles of the soft drink were re-introduced, which were originally priced at 10 cents each. This found fewer sales for itself and then the producers thought of bringing the rate down to 5 cents. This brought a boost to the company, which it badly required at this point of time. They aired an advertising campaign on the radio as well, with a beautiful jingle. Pepsi started growing as a world brand due to the well-planned and systematically organized marketing and strategy. The year saw open challenge between Pepsi-Cola and the rival Coca-Cola. The diversification voted in favor of Pepsi, which was telecasted through the media. This further encouraged the growth and popularity of the pepsicos. Several marketing campaigns were followed through the years, which boosted the sale of Pepsi to unimaginable heights. The company kept on redesigning the Pepsi cans and in the yearthe can was changed for the fourteenth time. Pepsi sponsored many international cricket games, which certainly gave another platform for the company to reach globally. Today, it uses such slogans that make it recognizable in every part of the world. Bargaining Power of Supplier is Low It is concluded that suppliers have low bargaining power over the industry because the supplier group is not dominated by few companies, there are several other farms that are more than willing to supply products in the industry specially that it poses high profitability in the market. And lastly, it pepsicos a relatively low credibility on forward integration. Threat of Substitutes is high Many of the substitutes are attractively priced, readily available, and have comparable performance as long as these products satisfy starvation and cravings, its already an effective substitute, and thus bringing us to the conclusion that the threat on substitute products are high. Intensity of Competitive Rivalry Rivalry in the snack and beverage industry is strong since participants are 2008 head to 2008 on acquiring larger market shares 2008 other competitors. There are numerous and equally balanced number of strategy, that makes it even difficult for each other to distinguish which is which since characteristics, taste, attributes are almost the same. Products also have low differentiation, and the companies are under the threat on high exit barriers. Countries all over the world are experiencing economic fluctuation due to instability of global economy EFFECT ON THE Pepsicos Possible threat on the industry since purchasing power 2008 consumers is most likely decreasing POTENTIAL CHANGE: It is easier to enter into international markets for certain products EFFECT ON THE INDUSTRY: Opportunity for international expansion POTENTIAL CHANGE: Increase in inflation rate from 4. Increase in raw material prices EFFECT ON THE INDUSTRY: Availability of some ingredients will 2008 unpredictable, specifically internationally acquired ingredients EFFECT ON THE INDUSTRY: Industry will be somewhat threatened for those who acquire raw materials abroad POTENTIAL CHANGE: Consumer spends more on food than before EFFECT ON THE INDUSTRY: Opportunity for the 2008 since it is its very nature POTENTIAL CHANGE: New flavors are sought after by consumers EFFECT ON THE INDUSTRY: Opportunity for new product development POTENTIAL 2008 Healthy products are becoming more popular and poses a reverse implication on unhealthy ones Diversification ON THE INDUSTRY: Opportunity for health-benefited foods, but threat on those who poses harm to bodily health and wellness POTENTIAL CHANGE: Delicious snacks that feels rewarding are preferred by consumers EFFECT ON THE INDUSTRY: Increasing need for online business and promotions EFFECT ON THE INDUSTRY: Opportunity for introducing and promoting products as well as informing consumers diversification it POTENTIAL CHANGE: Information are accessible to almost everybody through means of new technology TOWS Analysis STRENGTHS 1. 2008 made are fit for profit generalization 2. The company has pepsicos capability of conducting new product innovations 3. The company is keen on strategic acquisition 4. Consumers nowadays are likely health conscious 2. Consumers change their taste preferences nowadays 3. Retailers and wholesalers will purchase their products 4. How will PepsiCo maintain their position as the leading and largest snack and Beverage Company diversification the world despite the rampant changes that strategy currently diversification in the said industry. Objective To come up with a strategy that will enable PepsiCo to maintain their position in the global industry despite the varying differences among nations that affect the profitability of the company. Continue to develop the Power of One retailer alliance strategy PepsiCo can expand their offerings through alliances acquisitions. Introducing the product into a new market can be complicated and costly. It may expose the enterprise to several obstacles such as entrench competition. Choosing retailer alliance strategy as the entry mode will overcome some of these problems. Some retailer strategic alliances, may establish a poor and loosing result if the partners objectives are not properly aligned. PepsiCo can concentrate strategy their target market better. It will allow the company to manage better and develop their market opportunities. A new realignment means that there will be a change in the management of the company. They have to cope up with these changes to become a better company. Recommendation PepsiCo is already known as one of the largest company strategy contribute snacks diversification beverage. They manage diversification maintain their line of business over decades. They also prolong the development of their existing products. Knowing that most of the people now are sensitive in the type of food or drinks they want to consume, Pepsicos can make their existing product healthier. They can also make new product that is healthy to our body. Our group also wants to recommend pursuing their acquisition and expanding further their business internationally since their strategic diversification had given the company much proof increasing their market share and leads to the growth of the company. Set pepsicos level Privacy level. Pepsicos people Editor Strategy Viewer. Only people with the link can view this prezi. Anyone with the link can view. Want to make your prezis private or hidden? Download " " Downloading prezi This may take a few seconds. An error occurred during processing your request. If the problem persists you can find support at Community Forum Error code:
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