Strategy Simplified S1E28: PepsiCo Case Study (Business Model Analysis)
5 snips
Aug 12, 2020 Explore the dynamic business strategies of PepsiCo and Coca-Cola, uncovering how each company has evolved over the years. Discover how Pepsi's expansion into snacks gives it a competitive edge. The discussion also delves into their financial health and future growth prospects, illustrating the challenges and advantages Pepsi faces in the fierce beverage market. It's a fascinating breakdown of what sets these two giants apart.
AI Snips
Chapters
Transcript
Episode notes
PepsiCo's Snack Focus
- PepsiCo's snack dominance differentiates it from Coca-Cola, raising strategic questions.
- Is it a different business model, or are they executing similarly but with a broader product portfolio?
Divergent Acquisitions
- PepsiCo and Coca-Cola, founded around the same time, diverged with acquisitions.
- Coke focused on beverages (Maid), while PepsiCo diversified into snacks (Frito-Lay).
Business Model and Discounting
- Both Pepsi and Coke operate on a variable cost business model, utilizing similar distribution channels.
- Pepsi's diversification into snacks provided a broader appeal, but their discounting strategy nearly backfired.