Abstract
The report illustrates the innovation and growth strategy of PepsiCo in the recent century.Over the period of time, the company hasgrown larger in terms of size and market share in different region, but faced fierce competition from Coca-Cola group. From theprevious strategy it can be found that PepsiCo has remain to be a responsive strategy maker, trying to compete with Coke. However, in the recent year 2016 and 2017, the companyunder the leadership of the new CEO has diverged its focus from competing with Coke to developing the product portfolio based on market trends. It has launched its “guilt free product line” in US and Europe to cater the healthconscious market andhas been continuously introducing the beverages and chips to increasethe market penetration in different region. Thisgrowth strategy along with innovation in processes has allowed Pepsi to develop a new path in catering the market adopting the differentiated strategy.
Though the growthstrategybrand innovation hasofferedthe companycertaincompetitive edge in the markets, however, the implementation of the same strategy into different regions with different culture and geographiesand issue, hence would challenge the company in developing the right global strategy.
Keywords: Innovation, Global strategy, Growth
Pepsi co Growth and Innovation Harvard Case Solution & Analysis
Introduction
PepsiCo is a worldwideplayerin beverages and Food. Since from the initiation, it catered the US markets and otherEuropean market by offering the carbonated drinks. Over the period of timeand with gradual shift in theconsumer behavior the companystarted re-strategizing its productportfolio strategy and stated including chips and other foods in the portfolio. Though this has been a side strategy of the company, PepsiCoremaincompetingwithCoca-Cola group of companies since they both operated in the same industry. Coca-Cola elevated itsbrand portfolio by including the additional brans like minute made pulporanges,juices, and zero calories carbonated drinks. ThoughPepsi did not iterate the full strategy it developedto compete with Coke in the strong regions like Asia and UAE.
Althoughthroughout the period the tug of war between the two brands made one or other champion certain period, however, this continuously made PepsiCo to develop the strategies in response to the Coke strategies, until 2016, when the company’sCEO developed the new strategy of increasing its product portfolio and including the “Guilt free food” including baked LAYS, and other high protein drinks, designed to purely target the diet conscious female market in USA andthroughout the globe. It also introduced the food portfolio including the protein drinks, chips that has 20% low oil and fats.All this allowedPepsiCo to divert its focus from being a competition to the Coke and allowed it to design its own strategy in capturing the market share.Such Cause of action has also made PepsiCo to focus on the Research and development to innovate its foodprocessingtechniques while has also allowed to grow in the existing market by offering the extendedproduct line.
Problem Statement
Primary Issue
Since the overall US market and other markets like Europe, Asia are shifting the trend towardshealthyeating, the company is facing the threat of low sales in the next coming future which may dilute its presence inmarket and may also eliminate the presence of product SBUs from certainmarkets..............
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