Once, it had only catered to salty snack foods, but today, it also caters to sweet snack foods through ready to eat popcorn and healthy alternatives through Quaker Oats. This provides a wide variation of choices for consumers who may opt for a tasty food or healthy food lifestyle. PepsiCo also includes the quick fast food restaurants business in the synergy mix. Through its three leading fast food restaurants, Pizza Hut, KFC and Taco bell , PepsiCo can distribute its
9 beverages through a captive customer market that would entail of their beverages through fountain drinks. A well-known synergy maneuver by PepsiCo is through the “Power of One” strategy where PepsiCo urges supermarket outlets to put PepsiCo’s beverages and salty foods side by sid e through the premise that snack foods and soft drinks come together. Through the “Power of One” strategy, PepsiCo is able to ensure that these snack foods and soft drinks that consumers will buy are all PepsiCo’s. It will also lead for consumers of snack foods to try out PepsiCo’s beverages that are just conveniently placed besides the snack foods display and vice versa. PepsiCo’s aim towards synergy maintains its hold in three dominant industries while upon allowing each industry to benefit with each other. It is able to create one strong cohesive food empire with companies that are complimentary, beneficial, and not to mention, urged to interact with one another. This has led PepsiCo to have a tremendously impressive sales track record and a strong dominating performance as it earns hundreds of millions of dollars daily with its three industries. As it continues to expand and innovate, there is no wonder that PepsiCo could achieve and grow more. SWOT Analysis of Pepsi Co: To analyze the strategy of PepsiCo at hand, the paper will delve into the SWOT Analysis which will assist in the determining and evaluation of the strategy’s workability. Strengths: PepsiCo dominates the competition through their three industries and brands. Frito Lay alone is a world leader, the benchmark no less of snack chip industry. Their annual sales, through their acquisition and product expansions, constantly increase. The acquisition of potential market leader companies continues to strengthen and empower PepsiCo. Besides its huge diversity of food, beverage and quick fast food businesses, PepsiCo employs an impressive synergy plan that attempts to consolidate all of its businesses. From its practice of transferring its best managers to its many different companies to its “Power of One“ Strategy, PepsiCo is able to tie its companies together and allow each company to benefit others and vice versa through a continuous sharing of knowledge, skills and practices.
- Fall '18
- abu nase mohammad saif