Question

In: Statistics and Probability

what does a 9 cell industry attractiveness/business strength matrix displaying PepsiCo's business look like?

what does a 9 cell industry attractiveness/business strength matrix displaying PepsiCo's business look like?

Solutions

Expert Solution

PepsiCo's portfolio does exhibit good strategic fit. It seems as though, for the most part, PepsiCohas pursued a strategy of acquiring businesses that have certain elements in common in terms ofproduction, distribution, and marketing. The areas of the business in which PepsiCo hasdemonstrated particular success in exploiting strategic fits in the value chain are in purchasing,where Aquafina and Pepsi-Cola enjoy cost-sharing benefits, operations, where cost sharingbenefits are achieved among hot fill operations of Tropicana, Dole and SoBe, distribution, inwhich cost sharing and skills transfer may be achieved among the longer-established beverageunits and Gatorade, and in sales and marketing, where Frito-Lay products and all otherconvenience products (especially soft drinks) can be cross-marketed using brand sharing.PepsiCo should continue to explore new opportunities for skills transfer, brand sharing and costsharing benefits across all business units, in order to maximize its advantage as a diversifiedcompany.


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