Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 10 pages
Data source: Published sources
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https://casecent.re/p/63253
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Abstract
Since the mid-1960s, PepsiCo, the world''s number two soft drink maker, had gradually transformed itself from a carbonated soft drink maker to a diversified food and drink business. PepsiCo''s diversified portfolio, while helping it to tide over a slowdown in the global beverage industry in the late 1990s, also provided it with an unparalleled bargaining power to deal with supermarket giants like Wal-Mart. The company witnessed a 45% increase in its sales and a fourfold increase in its net profits between 1996 and 2004. By 2004, with net revenue of $29 billion, PepsiCo was the world''s third largest food and beverage company. The case, while focusing on PepsiCo''s diversification strategies, offers scope to discuss the potential challenges for the company, with its diversified portfolio, in the face of anti-obesity concerns sweeping across the globe.
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Abstract
Since the mid-1960s, PepsiCo, the world''s number two soft drink maker, had gradually transformed itself from a carbonated soft drink maker to a diversified food and drink business. PepsiCo''s diversified portfolio, while helping it to tide over a slowdown in the global beverage industry in the late 1990s, also provided it with an unparalleled bargaining power to deal with supermarket giants like Wal-Mart. The company witnessed a 45% increase in its sales and a fourfold increase in its net profits between 1996 and 2004. By 2004, with net revenue of $29 billion, PepsiCo was the world''s third largest food and beverage company. The case, while focusing on PepsiCo''s diversification strategies, offers scope to discuss the potential challenges for the company, with its diversified portfolio, in the face of anti-obesity concerns sweeping across the globe.