Hi, need to submit a 2000 words paper on the topic Pepsi Company 2014 Diversification Strategy. This essay talks about the Pepsi Co Inc. which was founded 50 years ago as a merger between a snack company (Frito-Lay) and a soft drink global giant (Pepsi Cola). The paper explores Pepsi Co, Inc diversification strategies responsible for its continued growth.

PepsiCo is divided into six business segments. The Frito-lay North America, the Latin American Foods, the Quaker food North America, PepsiCo Europe, PepsiCo Americas Beverages and the PepsiCo Asia and Africa. Each of the company business segments employs three key strategies to enhance its competitiveness in the beverage and snack industry. These strategies included global expansion, product innovation, and strategic alliance.

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PepsiCo has expanded most of its operation internationally through acquisition and mergers. This strategy has offered the company great business advantage due to the access to already established infrastructure and competencies in the foreign market. More importantly, through this strategy, the company does not need to start from scratch and thus it reduced the overheads and direct cost.

By employing a broad range of innovative product development initiatives, PepsiCo has been in a position to launch new products on a yearly basis. Moreover, each year the company opened up a new plant in various locations both locally and internationally. PepsiCo enrolled popular celebrities to endorse its brands internationally. PepsiCo formed strategic alliances with huge corporations on a global scale.

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