THE STRATEGIC ANALYSIS OF PEPSI COMPANY

The Strategic Analysis of Pepsi Company



The Strategic Analysis of Pepsi Company

Introduction

The strategic management analysis is referred to the critical evaluation of every initiative taken by any company from the viewpoint of top level management company on behalf of owner, which entails performance, resources and the analysis of external and internal environmental analysis. This involves identifying the vision, mission and objectives of the organizations while developing plans and policies, usually in context of programs and projects that are designed in a way to achieve stated objectives, by specifying the allocation of resources, which help in implementation of plans and projects. Performing strategic analysis has become important for every company at present, due to the fact that competition in every industry is growing. Moreover, multinational firms also need to analyze their current strategies in order to identify the weak points which can cause harm to the business. Therefore, it can be said that timely strategic analysis will help companies in assessing their business strategies in accordance with the changing trends of markets. This paper in this connection, will perform the strategic analysis of PepsiCo, and will identify strategies that company shall be following while recommending future strategic options which can be exploited by the company.

Background of the Company

Pepsi is one of the largest selling carbonated soft-drink brands, which in 1893 was introduced in the market as Brad's Drink and later changed as Pepsi-Cola in 1898 and then as Pepsi in 1961. PepsiCo produced and manufactured Pepsi. The company was started in the drug store of Caleb Bradham located in New Bern, North Carolina, United States during the year of 1893. Since then, the company has seen many rise and fall and has been under different leadership. During the great depression at the time of World War I, Caleb had to sell his company to Roy C. Megargel, but he failed to lead the company to success, which is the reason he again sold the company to Loft Inc's president Charles Guth. However, it was not until 1930s since Pepsi formally started to rise in the US market and since then it continued to grow. Pepsi has created a niche market, while targeting black as the consumers as well, which increases the profitability of the company in a dramatic manner. Since then, Pepsi has been in continuous rivalry with Coca-Cola and their competition has actually been named as Cola-Wars. However, the market situation is not like it was two decades ago. More and more competitors have jumped in this market and have managed to sustain a significant number of growths by offering unique tastes utilizing completely different formula. Moreover, energy drinks, beers among others has also shifted the paradigm of the industry significantly. Therefore, it is more than important for the company to analyze its present strategies in order not only to increase its profit but to ensure its long-term sustainability (Sun, 2010).

Identification of Strategies

The business strategies of Pepsi are highly diverse in accordance with the ...