There is a definite competitive rivalry defined between PepsiCo and other companies. The first one that comes up in everyone's head is Pepsi and Coke which has continued on for nearly a century; others include Lance, Kraft, Proctor and Gamble. All of these companies have produced one of the most competitive market rivalries today; however, not as high if it was an oligopoly, a market of only 4 suppliers with intense rivalry. However, profits continue to be high for each company.
Strengths.
Merger combined two strong companies, PepsiCo and Quaker Oats.
Savings resulting from economies of scale.
Company does more than just soft drinks.
PepsiCo has outstanding reputation with Minorities.
Merger of Quaker Oats produced synergy across the board.
Record revenues and increasing market share.
Lack of capital constraints.
Strong existing product brands.
Number 1 maker of snacks, such as corn chips and potato chips.
Weaknesses.
Merger combined more than carbonated and noncarbonated drinks.
Harder to inspire vision and direction for this large global company.
Not all PepsiCo products bear the company name.
Company's broad holdings are still seen as separate entities, not as parts of PepsiCo.
Opportunities.
Merged company should be able to expand markets.
Coke's pass on Quaker Oats should open door for PepsiCo.
Noncarbonated drinks are the fastest-growing part of the industry.
Pepsi gains sponsorship rights to NFL.
Pepsi bumps Coke as United Airlines' cola of choice.
10/01 Pepsi's P/E ratio matches Coke's for the first time in ten years.
Over 50 percent of the company's sales come from Frito-Lay.
Threats.
PepsiCo has a large investment in Quaker Oats in order to get jump on noncarbonated drink market. .
Newly acquired Quaker Oats will require restructuring to provide synergy between warehousing and distribution.
Over 50 percent of the company's sales come from Frito-Lay; this is a threat if the market takes a downturn.
I. Firm Profile PepsiCo is an organization that specializes in the beverage and soft drink industry. The company has revenues of over $200 billion and 125,000 employees. It was founded in 1965 by president and CEO Donald M. Kendell. ...
The marketing mix E4) Describe your marketing strategy using the marketing mix The marketing mix is commonly referred to as the "4 p's-, which stand for price, place, promotion and product. These are the four principles of a product which should lay the foundations for the launch and the growth of a product. My product will initially follow the code of the marketing mix therefore it should be successful in its campaign. Product Product is in fact the range of products that a business offers to the market place. Decisions have to be made about quantities, timing product variation...