PepsiCo is notably a world leader in the production of convenience foods, as well as, drinks. PepsiCo has numerous portfolios with a representation in over two hundred countries. Worth noting is that it has been regularly considered as a world leader in its field but has often come in the second position following Coca-Cola Company. This makes the problem of competition as offered by its primary rival competitor, Coca-Cola, be the greatest challenge that PepsiCo faces.
Evidence
As having been identified by an employee of PepsiCo, the only sure way to success for the company would be beating Coca-Cola as a cheaper alternative. The facts used in measuring this data encompasses its second place that it has acquired over an extended period of time in the market. Besides, its diversified nature makes it to have a divided attention as opposed to its rival competitor Coca-Cola all contributing towards the challenge of competition. ("PepsiCo 2005 Case Analysis", 2009)
Analysis (Strategic)
PepsiCo was rightly positioned in the market for the production of its services and commodities. This can largely be perceived in terms of the acquisitions it made, the efforts it makes in employee satisfaction and also the decentralized system of authority that it utilizes in managing its several outlets in the entire world.
Alternative solutions
A notable solution to the challenges being faced by PepsiCo would be to practice more acquisition as this has the propensity of propelling the entity above its notable competitor i.e. Coca-Cola. Such include the California Pizza that was acquired in 1992. (Colleen, 2001, p. 15) Another alternative solution would be diversification. Diversification would enable the company reach more markets and consequently have more consumers thus increasing its prospects.
REFERENCES
Colleen, H. (2001). PepsiCo Restaurants. Florida. Harvard Business School.
PepsiCo 2005 Case Analysis. (2009). Technical Writing Portfolio. Retrieved 28 May 2016, from https://predicate.wordpress.com/2009/06/17/pepsico-2005-case-analysis/
