Pepsico Case Study

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Competition Strategy
PepsiCo is rated the second biggest player in the global food and beverage industry (Ferguson, 2017). This rating means that they face stiff competition from rival companies like Coca-Cola and others in the industry. The strategy that PepsiCo has used over the years to stay competitive in the food and beverage industry is constructed from of two generic strategies cost leadership and broad differentiation (Ferguson, 2017). Utilization of this strategy has enabled PepsiCo to maintain its reputation and continual growth in the industry despite the highly competitive market (Ferguson, 2017). Cost leadership is PepsiCo’s primary competitive strategy (Ferguson, 2017). This strategy primarily focuses on the use of cost
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The second factor in PepsiCo’s competitive strategy is differentiation (Ferguson, 2017). Differentiation strategies involve a business seeking to differentiate their product from those of their rivals in ways that appeal to a broad spectrum of customers (Thompson, Strickland, & Gamble, 2010). Differentiation enables business competitive advantage by attracting consumers to the unique features of their products (Ferguson, 2017). One example of this is PepsiCo’s Frito-Lays potato chips being marketed as a healthier snack because of its reduced saturated fat content (Ferguson, 2017). PepsiCo’s strong growth strategies enable them to effectively utilize cost leadership and broad differentiation to maintain their strong competitive advantage and their continued success is an indicator of how well these strategies are working for PepsiCo ( Ferguson, 2017). SWOT Analysis
The Strengths of PepsiCo are as follows:
Ranking Brand Owner
1 Lay’s Owned by PepsiCo
2 Doritos Owned by PepsiCo
3 Cheetos Owned by PepsiCo
4 Ruffles Owned by PepsiCo
5 Pringles
6 Tostitos Owned by PepsiCo
7 Wavy Lays Owned by PepsiCo
8 Fritos Owned By PepsiCo
9 Tostitos Scoops Owned by PepsiCo
10 Snyder’s of Hanover
1. Brand appeal and reputation: PepsiCo produces and markets some of the most recognizable brands on the market. Brands like Pepsi, Tropicana, Gatorade, Mountain Dew, Aquafina, Lay’s, Doritos, Cheetos and many more ("Explore PepsiCo's Global Brands", n.d.). The Pepsi brand is the 22nd

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