Pepsi -- Organizational Evolution and Term Paper

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("Contemporary Trends in Corporate Design," 2001)

Pepsi's second era of expansion in the 1970's transpired when domestic markets at its corporate home base had become stagnant. Foreign markets were growing much faster than domestic markets and thus a source of greater volume of sales. It wished to maneuver itself ahead of its rival Coca-Cola by dominating the world, if it could not immediately dominate the domestic, American market. Globalization then and now allows one to take advantage of legal system, taxes, quotas, tariffs and all kind of governmental barriers, and make investments for profits and immediate sales. However, contrary to traditional trends, Pepsi did not wish to follow domestic customers that go abroad, make use of an oligopolistic or monopolistic position of the company nor a bandwagon effect, given that these tended to be more along the lines of Coke's dominance, as Coke was the more famous brand in America.

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Pepsi attempted to obtain monopolistic dominance of all international markets by establishing exclusive licensing agreements, such as when it entered the emerging Slavic market. It again, as it had in the 1930s, became vertically integrated, control suppliers, distributors, and all other stages pertaining to the product.

What has remained at the core of both its international and domestic appeal is the centrality of Pepsi's advertising, as it remains "Generation Next," rather than a Classic, despite the fact that the company is almost as old as coke. Through dominating chains of distribution, the company and all of its products, cola and non-cola alike, continues to move aggressively into supermarkets, vending machines, and into overseas markets, with little signs of stopping in its market maneuvering in the future. ("Pepsi-Cola," The Soda Museum)

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