Business Case Studies, Competitive Strategies Case Study, PepsiCo in 2006,

print page
Tell A Friend

Case Categories

Share |

Competitive Strategies Case Study

Case Title:

PepsiCo in 2006

Publication Year : 2006

Authors: Sandhya Hotchandani, Joel Sarosh Thadamalla

Industry: Beverages


Case Code: COM0127A

Teaching Note: Not Available

Structured Assignment: Not Available

Buy This Case Study


On December 12, 2005, for the first time in the rivalry of over a century, PepsiCo (Pepsi) surpassed its biggest foe Coca-Cola (Coke) in market capitalisation. It had much higher operating revenue than Coke. After having tough time in mid 1990s, Pepsi finally got increasing sales and cheering investors.

Ac cording to the analysts, the chief reason for Pepsi’s outstanding performance was its aggressive diversification. Though started as a beverage company, Pepsi now held No.1 position in snack food business with its Frito-Lay division and ranked No.3 in overall food & beverage industry. However, Coke still continued to sell more soft drink than Pepsi.

The case tracks the journey of Pepsi and compares its current position to that of 90s. It highlights the strategic moves of Pepsi, which led it to overcome cola trenches and outperform its biggest competitor Coke. Nevertheless, the success, would Pepsi be able to sustain its performance?

Pedagogical Objectives:

  • To highlight the first mover advantage enjoyed by PepsiCo by venturing in food business
  • To discuss the leader and challenger strategies
  • To discuss the competitive strategies and diversification strategies of PepsiCo.

Keywords : PepsiCo; Coca-Cola; Pepsi-Cola; Frito-Lay; Business Strategy; Strategic Management; Diversification; Brand Portfolio; Globalisation; Competitive strategy; Competitive Strategies Case Study; Business ethics; Snack food; growth; cola wars

Contents : 
Industry Overview
Doing Business with Ethics
Pepsi’s Consolidated Statement of Income
Coke’s Consolidated Statement of Income
List of Food & Beverages Companies by sales
Timeline of Pepsi
Diversified Brand Portfolio of Pepsi
Major Brands of Pepsi
Pepsi’s Smart Spot Product Portfolio

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • Jeff GeeJeff Gee

    Speaker and Author
    Speaks on Competing for Customers
  • John P KotterJohn P Kotter

    Konosuke Matsushita Professor of Leadership, Emeritus at Harvard Business School.
    Speaks on Leadership
  • Geoffrey MooreGeoffrey Moore

    Managing Director at TCG Advisors and a Venture Partner at Mohr Davidow Ventures.
    Speaks on Innovation
  • View All Executive Interviews»

Contact us: IBS Case Development Centre, Survey No. 156/157, Dontanapalli Village, Shankerpalli Mandal, Ranga Reddy District, Hyderabad-501203, Telangana, INDIA,, Fax: 08147-236653,E-mail:

©2003-2010 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap