Jumat, 22 Maret 2013

Business Level Strategy

Pepsi logo
Pepsi seems to be in a growth stage in the industry life cycle . The reason I believe they are in a growth stage is because they are doing many things to differentiate themselves from other companies such as Coke. In the differentiation process I think it is important to talk about their relationships with stores and different companies, so in other words there network is very strong. They are well known for their brand or image. They have many commercials that have famous actors or people drinking Pepsi products in them and that is what gives them their image. They also have good customer service. This is actually personally known by me because I had to call and deal with them because I bought a defective twelve pack of Pepsi and it was bad so they sent me coupons for a couple free twelve packs to make it up to me. It was exceptional service. I would say they are not doing much as far as trying to be a cost leader because all pop prices are the same the majority of the time so they don’t have lower prices.
Pepsi has its logo that keeps changing and that has a copyright along with they probably have patents on their different products. There are many substitutes for Pepsi but they are very successful and they try to stay on top. This is referring to Porter’s five forces model.  They also have bargaining power over their suppliers because they produce such large amounts of their product that they have to have a good relationship with their suppliers in order to keep up such a good product. I wouldn't say that Pepsi has control over the buyers just because they have other options if they don't want to buy Pepsi.

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