Business Level Strategy

Because PepsiCo. has such a great number of products, I will focus on their soda products for my analysis of their business-level strategy. The strategy that Pepsi uses for their soda is differentiation. There are countless brands of soda on the market, many of which are cheaper that Pepsi, so they can not realistically be the cost leader in the market. Instead, Pepsi works to make their product stand out both in flavor and in name. Pepsi cola has a very specific taste that customers like, and that is different than the cheaper generic soda available, that makes the extra cost worth it for customers to continue to buy Pepsi. They also have a widely recognizable name known for quality helps them stand out in the market. When someone buys Pepsi, they know what they are getting. Because of differentiation, Pepsi has been able to stay strong in the competitive and somewhat flooded cola market.