Frito Lay



Frito Lay

Question 1

The snack chip category is highly fragmented and difficult to measure as it has highest market share worldwide. The chips are popular snack in the form of thin slices of dried potatoes (most common) or other vegetables, usually fried in deep, hot fat oil. Due to the high energy value chips, for their production are also used fat substitutes and modern production technologies, such as cooking with the microwave, then spray a little oil (without immersion in fat). The different flavors are obtained through the selection of spices and flavors, rarely herbs (Frito-Lay, 1982).

Evaluation of competitive position of the firm involves a set of actions; rationally reveal the contents of the company in the marketplace. It allows you to identify the key points of discrepancy between the lines of firm behavior and market behavior. At the same time depends not only on the condition that characterizes the impact of market environment on the organization, but also the conditions that reflect the degree of influence of the organization to the market. It should be noted that the quality management and regulation activity correlated with firm performance indicators of activities undertaken by it on the market.

The competitive position of Frito lay in chips or crisp market is very strong as it has competitive advantage over other brands and products. Frito lay enjoys major competitive advantage in chips and dips market. They carry highly profitable products with varieties in product line and had phenomenal sales revenue over a certain period of time (Datamonitor, 2011). The Frito lay management has focused more on technology for gaining more market share and have introduce numerous products with heavy investments on advertising. The company has managed competitive advantage over the years because of the innovation and market leader in the salty snack foods.

Question 2

Strategic planning in marketing is one of the functions of management, which is the process of choosing the organization's goals and ways to achieve them. Strategic planning in marketing provides the basis for all management decisions, functions, organization, motivation and control focused on the development of strategic plans. The dynamic process of strategic planning is the umbrella under which hide all management functions that are not taking advantage of strategic planning, organization as a whole and individuals will be deprived of a clear method for evaluating the goals and direction of the corporate enterprise (McDonald, 2008). The strategic planning process of Frito lay provides a framework for the management members of the organization in devising proper policies and strategies for marketing and other functional areas. The major challenge face by Frito lay in marketing is the importance of strategic planning as they enter into fierce competition among themselves and with other competitors (Datamonitor, 2011).

The other challenge faced by Frito lay in marketing is to keep focus on the data of the past, which assist them to identify and monitor the development of the company in the future. Therefore, the reliability of planning depends on the precision and ...