Frito Lay is an American company that is a subsidiary of PepsiCo Inc. Frito Lay. The company was started as a merger between two firms, including Frito Company and H. W. Lay in 1961. Pepsi Cola Company acquired Frito Lay to form PepsiCo in 1965. It became a subsidiary of PepsiCo in the same year.
This company manufactures and sells potato chips, corn chips, crisps among other snacks. This firm has managed to capture the American snack market (Belz and Peattie 45). Through this firm, PepsiCo is considered the largest global snacks company in the world.
It has captured thirty percent of the American market. In the financial year that ended December 2010, its total revenue was about 40 percent. Since 1965, this firm has had a consistent growth in the market share in the United States market. It has managed to be the market leader in this industry in the US.
Its financial capacity has also enabled it to capture overseas markets. Currently, this firm has its presence in all the North American countries, some countries in South America, Europe, Central Asia, and the Middle East.
Sustainability is the most significant factor in any business unit. For a firm to be considered successful, it must be able to sustain itself in the business. Sustainability of a firm depends on a number of factors. Making profits alone is not enough to guarantee sustainability.
Socio-economic and environmental factors affect the profitability of the firm. The firm must be able to sustain its profits and operations in order to continue operating in the market. Frito Lay has shown that it is sustainable in a number of ways.
It is true that this company has faced a number of social problems in the market. It was accused of using genetically modified ingredients in some of its products. Genetically modified foods have raised many controversies in various countries in the world, including the United States.
The firm was also once accused of stereotyping the Mexico-Americans. This firm was able to overcome these accusations. It has remained steady in its operations over the recent past. It has managed to retain public trust.
In the current society where many people have many concerns over the health condition, this firm has managed to maintain the trust of its customers. People believe that this firm has been able to use natural ingredients in its products, a fact that has helped it in recording a tremendous growth (Charantimath 13).
Economically, this firm is immensely strong. This subsidiary of PepsiCo made a profit of over 4 billion US dollars for the year ended December 2011. This shows that it has a remarkably strong economic base that would allow it support most of its operations.
Its financial base can support research and extension projects. The environmental factors have been favorable for Frito Lay over the recent past. Although a number of environmental groups have strongly opposed some of the wrappers used by the company, it has been able to respond to most of the environmental concerns.
The firm has reduced the amount of plastics it uses in wrapping its products. It has also been able to reduce emission of green house gases. This has made it receive green light from environmental officers. In other words, the company has no issue with environmentalists.
Works Cited
Belz, Frank-Martin, and K. Peattie. Sustainability Marketing: A Global Perspective. New York: John Wiley & Sons Ltd, 2009. Print.
Charantimath, Paul. Total Quality Management. New Delhi: Pearson Education, 2006. Print.