I want to talk about the value
chain within Pepsi. Pepsi is such a large company I think that they don’t outsource
many aspects of the value chain. I think they might outsource marketing just
because they are all over the place. They also dont have a service. They distribute the product and then they are done with it. Pepsi has a general administration, but on that note I do not believe they have a service section. They have a pretty good outbound logistics because they are good at the distribution. they also must have a good Procurement to because they are such a large company
that they make a mass amount of products so they have a buyer power. The also
probably have a very productive inbound logistics because they have such a big
operation so they need to be organized. I believe that Pepsi’s core competency is
quality and price.
Thursday, February 28, 2013
Thursday, February 21, 2013
General Enviroment, Enviormental Scanning and Porter's Five Forces of iIdustry Competition
For Pepsi Company there are several
things to think about in the general environment of the business. For instance,
with the nation and the world being so focused on the health of the population
there might be less people buying Pepsi soda when you think of the demographic
group of 16-30. Then on the other side with people older than the 30 who grew
up drinking soda they might be less prone to trade out a healthier option for
the soda. There are also a couple other things to take into consideration. When
it comes to the sociocultural part of the general environment there will be
some problems with the people focusing on the health aspect of the products
that Pepsi offers. They might be less prone to buy pop and maybe more prone to
buying a water or juice in which Pepsi also has products in. I believe they
have to focus on pointing out that pop maybe isn’t as unhealthy as everyone
makes it out to be. I couldn’t find anything that went with the legal or
political side of the spectrum. Technology could be improved to have a better
turn out on any of the parts of bottling or production of the many products
that Pepsi sells. Thinking about the economical setting of the general environment
the rise in minimum wage will have an impact on Pepsi because that will drive
cost of making and distributing the products to go up which will in turn raise
prices which will maybe put more people on the fence about buying the products
all together.
Then there is external scanning which
could be the watching of other pop and juice products producers and trying to determine
the changes before they happen. This would be like watching Coke products and
tracking the trends as they occur. This can help keep the firm with a competitive
advantage. Last but not least let’s talk about porter’s five forces model. With
much consideration and review it does not seem like there is a potential for
new entrants just because Pepsi is a huge company and trying to compete with
Pepsi and Coke products may be difficult with both their vast amount of
products. With looking at all the information
don’t think they have bargaining power of buyers either. But people could definitely have substitutes
for Pepsi such as coke or other products in the market.
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