PepsiCo has a long history, and its predecessor is PepsiCo. In the early days, Pepsi mainly produced carbonated drinks. However, in the carbonated beverage market at this time, Coca-Cola has always been an important obstacle to its development. The concept of "preconceptions" makes Coca-Cola, which was produced earlier than Pepsi, occupy people's hearts. Most people are used to drinking Coca-Cola, and the customer loyalty is very high, which makes Pepsi, a rising star, unable to compete with it. Faced with this situation, Pepsi realized that in order to survive, it must develop other businesses and diversify its operations. At this time, the fast food industry is a good choice. Therefore, from the 1960s to the mid-1990s, PepsiCo adhered to this strategy and merged with the snack food giant Frito-Lay on 1965, and was officially renamed PepsiCo. Since then, the snack food business has been incorporated into the company's core business. Starting from 1977, Pepsi entered the fast food industry and successively took over Pizza Hut, Taco Bell and KFC. Since then, PepsiCo has not only three main businesses: soft drinks, fast food and restaurants, but also a long-distance handling company.
Two. Return to core business
By reducing costs and simplifying procedures, PepsiCo quickly gained considerable income in the fast food industry, but the good times did not last long. Its chain restaurants have affected the business of the beverage industry, and Pepsi's chain restaurants not only limited its competitiveness, but also caused financial difficulties. However, Coca-Cola, which has been committed to beverages, has doubled its sales at this time. At this time, Indra K. Nooyi, as the strategic master planner of PepsiCo, realized that it was time to return to beverages and snack foods and make them the main business of the company. Therefore, in June 1997, PepsiCo made a major strategic adjustment and separated its catering business from Pizza Hut, Taco Bell and KFC. 1June, 1999, Pepsi filled Pepsi.
While divesting its non-strategic business, PepsiCo focused on developing the beverage business and snack food, which were in strong demand, and successively acquired or merged a number of core businesses, deepening on the road of specialization and laying a solid foundation for further development. In the soft drink industry, from 1998 to-—20xx, PepsiCo successively acquired Tropicana Juice Beverage Company, Sobel Beverage Company and Quaker Food Company, and formed a strategic partnership with Thomas J. Lipton, and also cooperated with Starbucks Coffee Company to launch packaged coffee drinks.
In terms of snack food, since the 1970s, Pepsi has successively acquired brands such as Frito-Lay potato chips, Quaker cereal, Tropicana and Gatorade, transforming itself from a beverage company to a beverage and food company, and expanding its business scope.
20xx65438+February 65438+February, PepsiCo's share price rose all the way, but Coca-Cola could only face the embarrassment of its share price falling, and the market value of PepsiCo surpassed Coca-Cola for the first time. Through the strategy of effectively returning to the main business, PepsiCo has greatly consolidated its own strength, resources and technical conditions, and provided a guarantee for future diversified operations.
While returning to specialization, Pepsi also makes full use of advertising to shape its product image, with a view to shaping its products into the younger generation. However, it is impossible for any enterprise to rely on a single strategy to develop and grow for many years. It must always make strategic changes to cope with the changes in the external market environment, and PepsiCo is obviously an example for the business community.
Three. Develop diversification from the core
With the rapid economic development in recent ten years and the improvement of people's living standards, people's requirements for food gradually tend to be healthy and nutritious. "People's lifestyles are undergoing fundamental changes. When people are used to a sedentary lifestyle, as a company that provides people with daily food, we should also change the product structure and provide more low-calorie choices. " Indra K. Nooyi said that all these changes have changed PepsiCo.
In view of this phenomenon, she put forward the slogan of producing "healthy, nutritious and low calorie" food. The company is committed to extending the product line on the basis of the original production, producing healthy and low-calorie food, and returning to realize the diversified operation of related products.
So today people see that the business line of "New Pepsi" has already surpassed carbonated drinks and potato chips, including fruit juice, bottled water, sports drinks, tea drinks, coffee, breakfast food and breakfast drinks? More and more products are rich in grains, nuts and fruits.
According to different markets, Pepsi's market development strategy is also diversified, and new products with different tastes will be developed one after another according to the characteristics of its eating habits. For example, according to China's habit of drinking porridge for health preservation, its Quaker cereal introduced the flavors of "Lycium barbarum tremella" and "red jujube milk", and on potato chips, it introduced new varieties such as "Mexican barbecue flavor" in the Mexican market. In the process of its internationalization, aiming at different market segments. Its marketing strategy will also be adjusted accordingly. For example, in China, PepsiCo has localized its business model, marketing strategy, brand development, raw material procurement and equipment to better meet the needs of the China market.
4. Enterprises suitable for diversification strategy
Through the development process of diversification and professional transformation of PepsiCo, combined with the benefits and risks of diversification strategy, we can draw the following three situations to implement diversification strategy.
1. When it is difficult for enterprises to shape their competitiveness in a short period of time. In their own industry, when they have lost their competitiveness for various reasons, enterprises should consider developing diversification or changing careers.
2. Enterprises are already in the forefront of their own industries, so it is very difficult to further tap the development potential of enterprises in banks, and the profit level and profit space are obviously small.
3. The industry that the enterprise originally operated has declined, which is the so-called real sunset industry. If enterprises continue to operate in this industry, they will inevitably go to extinction.
Verb (abbreviation of verb) Precautions for implementing diversification strategy Diversification can make enterprises make full use of enterprise resources, and entering new fields will bring new opportunities and markets to enterprises, such as Pepsi entering fast food industry, but the barriers to entry, the dispersion of resources, the complexity of management and the uncertainty of income in new industries will also bring a series of risks to enterprises. For example, Pepsi's fast food industry has crushed its beverage industry. So when we choose the diversification strategy, we should do the following: 5 1. Objectively evaluate the necessity and ability of enterprise diversification. 2. Adhere to the main business and then consider diversification. 3. There is a certain strategic relationship between new business areas and existing business areas. 4. Establish a horizontal organization to coordinate the relationship between different business departments.