Strategic Development for Pepsico

4 April 2015
A report on the strategic development of the soft drink company, Pepsico.

The paper shows that although Pepsi has dynamic strategic planning capabilities, it still cannot capture the competitor’s markets and consumer loyalty that Coke possesses. It shows how Pepsi drastically needs to change its strategies so that it can capture a larger market and utilize its resources to the maximum. Various issues are addressed, including: Strengths (campaign leadership, organizational structure, retailers), Weaknesses (customer loyalty), Opportunities (brands, channels, geographical growth, technology), Threats and Strategic Planning.
Firstly Pepsi should expand its revenue. Currently the revenue is the same as Coke’s but the difference is that Coke generates the same amount from the local market as the amount that Pepsi generates from its international markets combined. That is how strong a hold Coke has on the local market. Defeating Coke in its local market would mean that Pepsi is on top. It is going to be very difficult to expand itself here and capture the local market because from the past experiences Pepsi has learned that Coke will apply any legal or illegal means to deter Pepsi from strengthening itself. So to increase the revenue, it would be wise to capture the international; markets and establish itself there. This is achievable because Pepsi gives competitive prices and can manage to sell internationally at prices that are equal lent to the local market that they intend to penetrate. That is why consumers internationally readily accept Pepsi.
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