Free Essays on Pepsi-Cola

There is a definite competitive rivalry defined between PepsiCo and other companies. The first one that comes up in everyone’s head is Pepsi and Coke which has continued on for nearly a century; others include Lance, Kraft, Proctor and Gamble. All of these companies have produced one of the most competitive market rivalries today; however, not as high if it was an oligopoly, a market of only 4 suppliers with intense rivalry. However, profits continue to be high for each company. Strengths  · Merger combined two strong companies, PepsiCo and Quaker Oats.  · Savings resulting from economies of scale.  · Company does more than just soft drinks.  · PepsiCo has outstanding reputation with Minorities.  · Merger of Quaker Oats produced synergy across the board.  · Record revenues and increasing market share.  · Lack of capital constraints.  · Strong existing product brands.  · Number 1 maker of snacks, such as corn chips and potato chips. Weaknesses  · Merger combined more than carbonated and noncarbonated drinks.  · Harder to inspire vision and direction for this large global company.  · Not all PepsiCo products bear the company name.  · Company’s broad holdings are still seen as separate entities, not as parts of PepsiCo. Opportunities  · Merged company should be able to expand markets.  · Coke’s pass on Quaker Oats should open door for PepsiCo.  · Noncarbonated drinks are the fastest-growing part of the industry.  · Pepsi gains sponsorship rights to NFL.  · Pepsi bumps Coke as United Airlines’ cola of choice.  · 10/01 Pepsi's P/E ratio matches Coke's for the first time in ten years.  · Over 50 percent of the company's sales come from Frito-Lay. Threats  · PepsiCo has a large investment in Quaker Oats in order to get jump on noncarbonated drink market.  · Newly acquired Quaker Oats will require restructuring to provide synergy between warehousing and distribution.  · Over 50 percent of the company... Free Essays on Pepsi-Cola Free Essays on Pepsi-Cola There is a definite competitive rivalry defined between PepsiCo and other companies. The first one that comes up in everyone’s head is Pepsi and Coke which has continued on for nearly a century; others include Lance, Kraft, Proctor and Gamble. All of these companies have produced one of the most competitive market rivalries today; however, not as high if it was an oligopoly, a market of only 4 suppliers with intense rivalry. However, profits continue to be high for each company. Strengths  · Merger combined two strong companies, PepsiCo and Quaker Oats.  · Savings resulting from economies of scale.  · Company does more than just soft drinks.  · PepsiCo has outstanding reputation with Minorities.  · Merger of Quaker Oats produced synergy across the board.  · Record revenues and increasing market share.  · Lack of capital constraints.  · Strong existing product brands.  · Number 1 maker of snacks, such as corn chips and potato chips. Weaknesses  · Merger combined more than carbonated and noncarbonated drinks.  · Harder to inspire vision and direction for this large global company.  · Not all PepsiCo products bear the company name.  · Company’s broad holdings are still seen as separate entities, not as parts of PepsiCo. Opportunities  · Merged company should be able to expand markets.  · Coke’s pass on Quaker Oats should open door for PepsiCo.  · Noncarbonated drinks are the fastest-growing part of the industry.  · Pepsi gains sponsorship rights to NFL.  · Pepsi bumps Coke as United Airlines’ cola of choice.  · 10/01 Pepsi's P/E ratio matches Coke's for the first time in ten years.  · Over 50 percent of the company's sales come from Frito-Lay. Threats  · PepsiCo has a large investment in Quaker Oats in order to get jump on noncarbonated drink market.  · Newly acquired Quaker Oats will require restructuring to provide synergy between warehousing and distribution.  · Over 50 percent of the company...