On DQ1Diversification and Based on DQ2 PepsiCo Essay

On DQ1Diversification and Based on DQ2 PepsiCo - Essay Example One of the reasons for the success of this company has been its ability to innovate. Innovation has helped the company create thousands of consumer products. It is important for companies such as P&G to create products that meet the needs, expectations, and desires of its customer base. â€Å"Effective business communication requires a certain skill set to determine the customer needs and then deliver on that information† (Highprofitsmarketing, 2013). When companies ignore the fact that satisfying the needs of the customers is of top priority they often struggle maintaining a high customer retention rate. It is important for companies that use diversification to add product lines that are aligned with the strengths of the firm. Another example of a company that implemented a diversification strategy was Microsoft with its successful entrance into the gaming industry. The XBOX 360 has taken a lot of market share away from Nintendo. Technological products are susceptible to being influence by innovation. An example of a technological product that has been constantly innovating is Apple’s iPhone. In six years the company has launched five versions of the product. All new versions have new innovative features. Innovation is often also found in luxury products. PepsiCo is the 2nd largest player in the soda beverage industry. The company is behind the industry leader Coca-Cola. Coca-Cola has historically done a better job at marketing its brand globally which has helped the company maintain a higher customer retention rate. â€Å"One of the most important metrics to measuring your customer retention is your retention rate† (Newnorth, 2013). Pepsi has to do a better job at marketing its brand in order to gain the global recognition that Coca-Cola has achieved. A factor that differentiates both companies is the fact that Coca-Cola has greater popularity among international consumers. I think that