How Pepsico Financed Its Growth

PepsiCo Succesful Business Model

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PepsiCo Succesful Business Model

Increased revenue generation

PepsiCo's success is attributed to its ability to be consistently adaptive to changing consumer preferences through innovation and expansion of the business to enhance market growth. The company harnesses its logistical capabilities to adopt new acquisitions for better sales. The company's preferences for food and beverages use similar requirements to handle, market, and distribute their products. The company utilizes its well-established supply chain to provide cash to reinvest in the business.

PepsiCo has developed and adopted a model to dominate non-alcoholic beverages by acquiring small competitors to increase dominance (Albert, 2022). PepsiCo has acquired Rockstar Energy, Sodastream, and Pioneer Foods. The companies have offered product expansion and geographical gain, leading to a high market reach that has increased revenues. The company has recently acquired companies that assist in raw material products like seeds to lower the cost of production.

The company has used new inventive products to compete with competitors like the zero-sugar beverage. The rise of the call for zero sugar products through the world population stimulates the high need for the products, enhancing global reach. The inventive model, which includes Pepsi Max, expands through Europe and is newly introduced to the US to increase the market reach. Furthermore, the company has largely invested in marketing, and to push the market through America, it invests in superbole marketing. The push for marketing in superbole is to tap into the sport's popularity to increase market share.