The Success Of Pepsico And Coca-Cola Company

The key elements/ideals of this case include the following:

Operational effectiveness: this emphasized on the need to perform series of activities that leads creating, producing, selling, and delivering a product or service, better and quicker, with probably fewer inputs and defects than their direct competitors.

The concern for operational effectiveness is that it is not sustainable without strategy, and so, competitors can easily emulate the method once it becomes successful.

Another element is productivity frontier: this determines the maximum value a company can generate at a particular cost, with the application of the available technology, skillsets, and management techniques. It helps to improve the value of their goods or service delivery,

Using the intensive growth strategy, enable the organization to apply its generic strategy to gain or retain its competitive advantage. The success of PepsiCo and Coca-Cola Company in the last 5o years is an indicator of the benefit of the strategic directions, and how strategy enhances competitive advantage. It is important to note, strategies that worked many years ago, might not be relevant in this current dispensation. It needs to be modified or tailored to meet the current market need or trend.

To apply some of the strategy discussed in the article, to these beverage giants mentioned earlier, the first will be cost leadership; this should be used generically as their primary competitive strategy. It focus on cost minimization as a way of increasing its financial performance and overall competences. This can be achieved by lowering prices due to low operating cost, or using special promotion and discounts to increase it sales. The purpose of this strategy is to automate all their production process to minimize operating