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PepsiCo’s Novel Market Challenges Essay

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PepsiCo’s Novel Market Challenges

As the coronavirus pandemic continues and new global and local crises emerge, many commercial entities, especially those of the size of international corporations, face new businesses and supply chain challenges. Among them is PepsiCo, which is also preparing its human and monetary resources and technical and infrastructure capacities for new market difficulties. For example, its analysts argue that there is “higher demand from shoppers as the global economy recovers from … the Covid-19 pandemic” (Sebastian & Maloney, 2021, para. 2). However, they also note “supply-chain disruptions and increased costs for aluminum cans, plastic bottles, labor and trucking” (Sebastian & Maloney, 2021, para. 1). The corporation will offset future associated costs by slightly tightening the pricing policy of its products (Sebastian & Maloney, 2021). However, one should remember that an untimely or incorrect response might lead to the strengthening of PepsiCo’s competitors in the food and beverage market.

Adapting Structurally to Coronavirus Crisis

As one can see, the coronavirus crisis has put significant pressure on PepsiCo’s key marketing sectors. The corporation decided to carry out an internal reorganization as another coping measure. According to Biscotti (2022), it nearly halved the number of operating units. The new division is based on global categorization and looks simplified and generalized (Biscotti, 2022). There are high hopes in PepsiCo’s top ranks that this organizational upgrade will make the core structure of the corporation more nimble, flexible, and less vulnerable to harmful external marketing, infrastructure, and political influences (Biscotti, 2022). Such a measure may also solve the existing financial and logistical problems with the production and transportation of their items. Interestingly, almost all top international market players experience similar corporate hardships and challenges in these days of lockdowns.

References

Biscotti, L. (2022). Pandemic accelerates big food and beverage company strategies. Forbes. Web.

Sebastian, D., & Maloney, J. (2021). PepsiCo juggles strong demand and supply-chain challenges. The Wall Street Journal. Web.

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