Hire Writer Pepsi made similar ventures in the Eastern European and Russian regions that proved to be profitable. Success is not guaranteed in the Chinese market, but if Pepsi has been able to achieve positive demand for its products in the past in other challenging markets, the company just might be able to drive growth in this market as well.
All these industries follow rules and regulations of the countries where they are operated. During the year of andboth PepsiCo. At that time the government of India had only set standards of pesticides for bottled water but not for soft drinks. Further factors that could adversely affect the industry are, import and export restrictions and foreign ownership restrictions etc.
This could affect performance and competition PepsiCo. As the industries operates globally, sometimes mergers and acquisitions of foreign firms require expanding business.
At that time, it becomes necessary for company to retain its key employees, understanding cultural background, adjusting work environment to maintain balance in the company. Also company needs to focus on development of products which can competes local brands and products.
For instance, Asia-Pacific region where people consume lemon juice and coconut water in pure form, such drinks create challenge for soft drink manufacturers.
Technology is a key factor to improve business and development. It is very important to maintain technological updates.
Failure to do so is a business risk as per PepsiCo. Food industry also depends on technology use. So companies operating food business hires technological companies to set up servers and data center. Also software engineers are hired from Information Technology provider companies.
Technology is being used in manufacturing and bottling plants and to maintain financial accuracy and efficiency. Also updating technology in bottling divisions significantly increased production, this may have negative impact on employees who may get laid off due to machinery updates at manufacturing plants.
Globalization aspects vary among industries. For instance, carbonated soft drink industry has more chances of global expansion than any other food industry.
Juice and functional beverage industry and bottled water industry fall under moderate chances because of transportation of water or materials that are too heavy. For bottled water manufacturer, there is no company can shift entire water resources from one country to another.
Thus the bottled water manufacturer must rely on local water sources where it operates; further the sources of water are not equally clean at different location so it may require different plant and treatment at every place.
Hence globalization of bottled water industry is not so easy. Snack food industry also needs to serve in different countries with different products. General environment reflects threats and opportunities of food and beverage industry as: Allowing franchises in foreign market will increase market share and revenue Key Success Factors: Ability to adapt to change: The company which can adapt new technology and adapt new consumer trends according to demand and can shift according to global demand and diversity will likely to emerge as rising sun in the industry.
The toughest industry is of carbonated soft drinks CDS which faces tremendous competition at home country as well as globally. Marketing is the essential un-detachable element in selling a product. Aggressive marketing is required to compete in market.
Coca-Cola and PepsiCo both are very aggressive in cola wars for marketing their products.
Strong distribution network enables company to make product available to maximum number of consumers. For instance wholesale retailers, grocery and convenience stores are the sources where consumers buy food products. The industry has very wide product portfolio which gives consumer control over product selection and suggestion.
Also degree of product differentiation gives company advantage over competitors. Consumers look for branded product when other options available. Sometimes branded products are costly but also creates the quality stamp for consumer, hence consumer go for branded product.
Brand names like Coca-Cola and Pepsi can have significant competitive advantage over their competitors. Economies of scale and scope: Economies of scale and scope are concerned with product price and its production cost.
Manufacturers can minimize marginal cost by ordering raw materials in bulk and switching production to multiple products hence expanding multiple products in portfolio give economic advantage.PepsiCo generated more than $63 billion in net revenue in , driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana.
The Secret to PepsiCo, Inc.'s Success How Pepsi does R&D Pepsi has increased spending on research and development by 25% since , with $ million going to product innovation last year. Environmental Factors The intent of this paper is to examine the environmental factors that affect global and domestic marketing decisions at PepsiCo and any company that operates in both domestic and global environments.
Pestle Analysis of PEPSI. issues as well as they have given as they provide a more organized business environments to the related companies like Pepsi Cola.
Environmental Factors. These factors encompass the high standards and expectations on the waste disposal related policies. There should be the focus on the sustainability of the business.
Oct 09, · Customers This creates mass revenue allowing effective advertising campaigns. With the world wide economic crisis, consumers are increasingly switching to the cheaper alternatives.
Coca cola's consumers are spending less on bigger luxuries and more on smaller ones. Competitors The differentiation of Coca cola is good, there are imitations of the product, but the patent they. Keywords Pepsi, environmental factors, PepsiCo, globally, conducts 0 Like 0 Tweet Environmental factors can be political, social, ecological, cultural, technological and ethical in nature/5(2).