PepsiCo pursues the strategy of vertical diversification. Previously PepsiCo was producing itself now PepsiCo is deviating from old complexity processes. It seems hard for PepsiCo to produce brands under one roof. With same standards and specifications, the company wants their supplier to manufacture products for them. This strategy will help PepsiCo to go more diversify and compete in the market. PepsiCo goes for the related diversification. PepsiCo wants to implement the strategy of cost leadership. They want to control cost as much as possible. PepsiCo achieves cost leadership through outsourcing operations.