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PepsiCo: External Considerations
PepsiCo is popularly associated with its flagship product Pepsi Cola. While Pepsi Cola is a sizable portion of PepsiCo’s revenue stream, PepsiCo actually has significant revenue generated from a slew of other products and divisions such as PepsiCo Beverages North America, PepsiCo International, Frito-Lay and Quaker Foods North America (Overview, 2005). PepsiCo’s Pepsi Cola has long been second in market share to Coca-Cola and the competition between Pepsi and Coke has been the stuff of business school legend for many years. However, thanks to a series of strategic acquisitions and market entry moves internationally, PepsiCo as a company has finally overtaken Coke in overall market share and performance: “PEPSICO...has raced ahead of...Coke in overall growth rates. PepsiCo earnings last year surged 18% to $4.2 billion on revenues of $29.3 billion, up 8.5%...Coke's 11.5% earnings growth to...4.4% revenue growth to $22 billion for 2004” (Steiner, 2005, para.2). It could be said that PepsiCo has lost the cola battle but won the overall war with its archrival Coca-Cola Company. PepsiCo has done this by becoming a snack food and beverage Company with operations in more than 200 countries worldwide, over 143,000 employees both national and international and over $4 billion in revenues (PepsiCo, 2004, p.4). Increasingly, PepsiCo, as most other large MNCs have done, is relying on overseas expansion to fuel its future growth and earnings.
External Factors
PepsiCo’s strategic sights are set on international expansion. Steiner points out that Pepsi International became Pepsi’s largest division in 2004 and this trend is likely to continue (2005, para.3). Although the United States and more broadly, North America, is the world’s largest snack market, its growth is relatively flat (Flannery, 2004, para.4). These two strategic observations certainly lend much credence to an outward focusing strategy of growth and expansion. In fact, this appears to be the driving force behind PepsiCo’s overall strategic plan: international expansion. Even more specifically, PepsiCo seems intent on establishing dominance in the two major markets of China and India: “"China is a big prize," says PepsiCo's Asia president...As the Chinese have opened up in the past ten years, there's been an inherent demand for foreign products...”(Flannery, 2004, para.5). This global strategic orientation is reflected by the opportunities available in the marketplace and is one readily accessible to any company, such as PepsiCo, that is well-funded and has the research and marketing capabilities to manage a unified market entry campaign.
1. International and emerging markets hold much potential .15 1 .15(责任编辑:BUG)

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