Pepsi-Cola
There is a definite competitive rivalry defined between PepsiCo and other companies. The first one that comes up in everyone?s head is Pepsi and Coke which has continued on for nearly a century; others include Lance, Kraft, Proctor and Gamble. All of these companies have produced one of the most competitive market rivalries today; however, not as high if it was an oligopoly, a market of only 4 suppliers with intense rivalry. However, profits continue to be high for each company.
Strengths
?· Merger combined two strong companies, PepsiCo and Quaker Oats.
?· Savings resulting from economies of scale.
?· Company does more than just soft drinks.
?· PepsiCo has outstanding reputation with Minorities.
?· Merger of Quaker Oats produced synergy across the board.
?· Record revenues and increasing market share.
?· Lack of capital constraints.
?· Strong existing product brands.
?· Number 1 maker of snacks, such as corn chips and potato chips.
Weaknesses
?· Merger combined more than carbonated and noncarbonated drinks.
?· Harder to inspire vision and direction for this large global company.
?· Not all PepsiCo products bear the company name.
?· Company?s broad holdings are still seen as separate entities, not as parts of PepsiCo.
Opportunities
?· Merged company should be able to expand markets.
?· Coke?s pass on Quaker Oats should open
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