24. PepsiCo PEST Political PepsiCo trying to get into underdeveloped market They have to considered on government taxation policy, environmental law regulations for both side. Economic PepsiCo rely on trucks for transportation Fuel price fluctuation is one of the important aspect Economic crisis will also to labor supply and consumers’ purchasing power
25. PepsiCo PEST Social Population on young consumers Changes in life style Social trend and demand People want to be healthy Technology Awareness on new machine launching Advance technology automation, will effect production efficiency R & D facilities
27. PepsiCo Porter 5-forces Threat of new entrance Low PepsiCo is well established and have Pepsi Bottling Group have brand equity, loyal customers Need huge investment for: R&D facilities, high tech machinery Must have: Lots of market experience in the same industry. Good distribution channel
28. PepsiCo Porter 5-forces Threat of Substitude Not a great deal for PepsiCo Consumers preference is the taste more than the cost Not many carbonated drink having the same taste as Pepsi-Colar other than Coca-Colar Loyal customrs Bargaining Power of Buyers Not so significant eventhought low switching cost Monetary cost is not the issue Consumers preference is the taste Convenience of the vending machine
29. PepsiCo Porter 5-forces Bargaining Power of Supplier Low Many raw material supplier like fruit and other ingredients PepsiCo partnership with farmers & community group, ensuring quality supply For Bottling and metal can, they make use 40% share of PBG. Only problem may rely on bad harvesting season due to climate change. Another aspect is on fuel oil crisis.
30. PepsiCo Porter 5-forces Competitive Rivalry Within An Industry Moderate to Strong Pepsi is not no.1 in Beverage market. Pepsi still need to compete with Coca-cola. Pepsi is new in Food market. Pepsi need to compete to big players like Nestle and Craf.
31. Boston Consulting Group Matrix Product Life Cycle Intro Growth Maturity Decline Sales Time 1 2 3 4