PepsiCo: Case Study.

Problem Identification

Problem

PepsiCo is a world leader in convenience foods and drinks, the company portfolio consists of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. The brand is represented nearly over 200 countries. Pepsi co is really a leader when it comes to convenience foods and drinks but it always come second best. It always comes behind Coca- cola, which is the world leader in soft drink. In 2006 Pepsi co was the world leader in this market we will study what strategy they used to be able to determine what is the problem since 2006 .

Analysis of the problem.

Problem Analysis.
On December 12, 2005, for the first time in the rivalry of over a century, PepsiCo (Pepsi) surpassed its biggest foe Coca-Cola (Coke) in market capitalization. It had much higher operating revenue than Coke.
Acquiring many companies is a strategy that propelled Pepsi ahead of it longtime concurrent Coca-cola. (.ibscdc2006)
The Quaker Oats acquisition at $13.9 billion brought Quaker’s most valuable asset Gatorade under PepsiCo. After the completion of Quaker Oats acquisition in August 2001, PepsiCo made a number of small, tuck-in acquisitions. The combination of acquisitions coupled with PepsiCo’s core snacks and beverage businesses allowed the revenues to increase from approximately $20 billion in 2000 to more than $35 billion in 2006. PepsiCo’s corporate strategy was diversification and a relatively new element of PepsiCo’s corporate strategy was product reformulations to make snack foods and beverages less unhealthy.( scrib 2006)

Alternatives Solutions
Alternative 1. Diversification Since it seems that by acquiring many small companies, it boosted Pepsi co revenue so high that it took coca-cola place and became when bigger than coke. Pros:
It gain a