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Are you sure you want to Yes No. Embeds 0 No embeds. No notes for slide. Pepsi co diversification strategy case analysis 1. Spun off the restaurant business Pepsi-Cola was founded. Open one snack food plant per year. Introduced Lipton tea and Aquafina. PepsiCo is relatively unsuccessful to introduce Quaker brand products to outside the US and the international operations less profitable than North America, and also slow bottling water growth.
This drive for smaller snack bags which easier for indulgence and to take during outing. Intense competition in beverages requires world class advertising. Gatorade sub brand use Tiger Woods as the marketing ambassador. In Indonesia, even local beverages companies use world class celebrities such as Miss Universe. Only few MNCs have large market share. Some local players with nich market. Bargaining power from Buyers Very high Cost to switch is very low.
Retailer may have bargaining power, depend on the size. Strong competitors such as: Coca- Cola, Kraft, Nestle. Have ability to develop new products and entering new emerging market. Firms offering Product Substitutes High Each beverages can be substituted. More and more products with new taste and healthy nutrition content. Bargaining power from Seller Medium Dependent to raw materials, but many providers are available.
PepsiCo Internal Analysis 1: Consumers are becoming increasingly health conscious. PepsiCo Internal Analysis PepsiCo Internal Analysis 3: PepsiCo Internal Analysis 4: PepsiCo Internal Analysis 5: Evaluating industry attractiveness Rating scale: Evaluating Business-unit Competitive Strengh Rating scale: Strategy Formulation - Strategic alternatives 1.
Strategy Formulation - Strategic alternatives 2. Strategy Formulation - Strategic alternatives 3. Pepsico has to focus on healthy products in order to respond to consumer health and wellness reduce the consumption of statured fats, cholesterol, trans fat, and simple carbohydrates.
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