Case Study of Pepsico-2009 Example | Topics and Well Written Essays - 750 words

Of Pepsico-2009 - Case Study ExampleThe two key threats facing Pepsico may be seen as the considerable level of competition from key players in the market such as Coca-Cola and Kraft who two have bounteous resources and capabilities to compete. In addition, the continuing economic downturn may be seen as a key threat to the company.Pepsicos key weakness may be seen as one cerebrate to the companys cost management system. spot the company is financially strong, it has struggled to maintain costs harmonious to sales growth.Market Focus In the first instance Pepsico should continue and accelerate a insurance policy of expanding its core product range into new markets were there is considerable potential for sales growth. Such markets take on China, the Middle East and Africa.Product Portfolio Analysis It has become clear that there has been a large variety show in demand on the behalf of consumers in the US and Europe with declining sales in traditional change drinks and rise in demand for healthier options. As such, in these geographic beas Pepsico should focus energies into developing and merchandise a range of alternatives to the tradito9nal carbonated drink and develop a clear healthy brand.Cost Reductions While the company is considerably profitable and has a strong balance sheet, costs have been rising disproportionately to sales growth. As such, Pepsico should embark on planed cost efficiency drive to help being expenses nates into line with sales growth and maintain profit margins.The rational for undertaking the recommended action plan is found upon the consideration of a number of key factors. Changes to the product mix in the US and Europe are designed to take account of changes in consumer demands for healthier products. On the other hand, key opportunities exist for large scale expansion in markets such as China where there is