Question

Conduct a 9-cell industry attractiveness and business strength matrix for PepsiCo, the world's largest snack and beverage company, with 2017 net revenues. Utilize relevant industry and financial data to assess the industry's attractiveness and PepsiCo's business strength, considering factors such as market share, brand equity, product innovation, and financial performance. After completing the matrix, explain your findings in detail, analyzing the strategic positioning of PepsiCo within the global snack and beverage industry. Evaluate the company's competitive advantages, growth prospects, and potential vulnerabilities based on the insights derived from the matrix. Additionally, discuss the implications of your analysis for PepsiCo's future strategic decisions and market positioning in an increasingly competitive and dynamic consumer goods landscape.?

Answer 1

The 9-cell matrix for PepsiCo would involve evaluating industry attractiveness and business strength through market growth, profitability, market share, and brand recognition. The result helps in strategic planning to maintain competitive advantages and informs decisions on product diversification and investment.

Step-by-step explanation:

The 9-cell industry attractiveness and business strength matrix is a strategic management tool used to assess the competitive position of a business within its industry. For PepsiCo, creating this matrix would involve evaluating the industry on factors like market growth rate, profitability, and competitive intensity to determine its attractiveness. Concurrently, PepsiCo's business strength would be assessed based on market share, brand equity, product innovation, and financial performance.

A high position on the matrix would indicate that PepsiCo is in a strong competitive position within an attractive industry. This could be due to PepsiCo's large market share, well-known brand, and successful product innovations. On the contrary, if PepsiCo is positioned lower on the matrix, it could indicate that, despite these advantages, the overall industry attractiveness is moderate to low, possibly because of intense competition or slower market growth.

Based on this analysis, strategic implications for PepsiCo might include diversifying product offerings if industry attractiveness is low or investing in areas where their business strength is strong. This strategic planning is essential in navigating a dynamic consumer goods landscape and maintaining a competitive advantage.