Академический Документы
Профессиональный Документы
Культура Документы
- Product improvement: this involves updating and augmenting the existing products, and can entail the
application of the latest technology to improve the products capabilities, improving customer services,
etc.
The market penetration is the safest strategy of all because it leverages many of the company's existing
resources and capabilities. In a growing market environment, simply holding market share is bound to
result in growth. There may be chances to increase market share if competitors approach capacity limits.
Still, this marketing strategy has limits. As soon as the market reaches a saturation point, some other
marketing strategy must be chosen if the company is to continue to grow10.
New
of
product
Innovations,
brand,
range,
Product development strategy should be chosen if the company's strengths are related to its specific
customers rather than to the specific product itself. In this case, it can enhance its strengths by
developing a new product targeted to its existing customers 14. Similar to the case of new market
development, new product development is more risky than simply trying to increase market share.
conglomerate or unrelated diversification strategy. It means expanding into products and markets, which
have no relationship to the companys current product, market or technology. Expanding incurs higher
risks, because the organization enters unknown markets and products. Company can justify such
strategies on financial and management synergies. When there is some existing connection with the
firms current value chain activities, it could enter a related diversification strategy. This can be divided into
two types16:
- Vertical or forward / backward integration: the outlets or sources of suppliers are jointed with the firm;
- Horizontal integration: consists of moves within the economic environment of the company 17, where are
some complementarities in terms of the market and technology.
Nevertheless, this marketing strategy may be an appropriate option if the high risk is made up for by the
chance of a high rate of return. Diversification strategy has also other advantages, like the potential to
gain a foothold in an attractive industry and the reduction of general business portfolio risk 18.
3. PepsiCo Inc.
3.1 Some key facts about the company
PepsiCo (Pepsi-Cola), Inc. is a global snack and beverage company. Donald M. Kendall, President and
Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of FritoLay founded it, through the merger of the two companies. The pharmacist Caleb Bradham created PepsiCola in the late 1890s. The 1961 merger of the Frito Company and the H. W. Lay Company formed FritoLay, Inc. In a bid to generate faster growth for the company, PepsiCo diversified into the restaurant
business through a series of takeovers. It purchased Pizza Hut in 1977, Taco Bell in 1978 and Kentucky
Fried Chicken in 1986. Now, the new company reports sales of $39 billion and has more than 185,000
employees19