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Merger, Acquisition and International Strategy As competition in most markets intensifies, firms are exploring approaches for surviving. International expansion is one of the strategies that have allowed businesses to escape intense competition. Through global development, companies can diversify their markets and extend the reach of their products. PepsiCois among the firm that has adopted comprehensive expansion strategies in a bid to broaden its reach and counter competition. Today, the company has the presence in all major international markets where it sells its beverage products. While such organizations have opted to expand their operations into new markets, other firms have chosen to remain in their original domestic markets. Kohl’s (a US-based firm) is among the players in the retail industry who are facing challenges that the company can address through expanding into new markets. If the company enters new markets, Kohl’s will join companies like PepsiCo that continue to reap tremendous benefits from their international expansion.
PepsiCo
Merger and Acquisition strategy …show more content…
Such recognition is what informed its pursuit of the business and corporate-level strategy. One of the business-level strategies that PepsiCo has implemented is cost leadership (Ferguson, 2017). This firm usually prices its products at levels that are lower than the price buy competitors, such as Coca-Cola, because it can produce at the lower cost compared to most of its competitors. Furthermore, the company has the option of pricing the same level with competitors to generate higher profits. Through this strategy, PepsiCo has been able to enhance its financial performance. Moreover, thanks to the cost leadership strategy, PepsiCo has developed a competitive edge (Ferguson, 2017). The cost leadership strategy has allowed PepsiCo to penetrate new markets and outperform such rivals as

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