Pepsico Update – Doing More of the Right Stuff

"PepsiCo bids to buy its bottlers for $6billion," is the Marketwatch headline today.  Another big Disruption, this time at the industry level, orchestrated by PepsiCo's Chairperson/CEO Indra Nooyi.  Now that changes are being made with the product line, packaging and brands this latest move will allow Pepsi's beverage division to much more quickly implement changes to align with market needs.  While Coke is doing little, Pepsi is disrupting the industry organization changing the marketplace and placing serious challenges onto all competitors.  And without waiting for the recession to end.

Many leadership teams should pay close attention to what's going on at PepsiCo.  By moving fast to align with future market needs they are catching competitors unwilling to take action due to recessionary concerns.  Their Disruptions are creating changes that will help Pepsi return to the "muscle building" organization created in the days of former Chairman Andrall Pearson.  And the changes coming out of White Space are helping Pepsi to develop a stronger Success Formula for competing in the post-industrial age.

Investors, employees and vendors should be encouraged by Pepsi.  Competitors had better be worried.  And all leadership teams can learn from the action being taken to gain share during this period of uncertainty.  As companies hit growth stalls the tendency is to "wait and see".  But winners react quickly to Disrupt and use White Space where they overtake delaying competitors – returning to the Rapids of growth and gaining share.

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