PepsiCo Company: Technology and Its Changes

Introduction: Technology as a Crucial Element of Success in the Global Economy Realm

Operating in the context of the contemporary global market implies developing the ability to respond to the changes in the quality demands and promoting technological improvement across the organization. The use of the dynamic capabilities of entrepreneurship, which is currently defined as the organization’s ability to adapt toward the rapidly changing landscape of the global market, can be viewed as essential to the future success of the firm and, therefore, must be supported extensively.

The reasons for the observed phenomenon to take place in the global market environment are quite apparent. Since the efficient use of information nowadays defines the success of an organization, it is crucial to deploy the tools that allow for the fastest retrieval of the necessary data and its most efficient processing. Furthermore, the significance of maintaining informational security rates high within the company is not to be underrated. Thus, it is imperative to use the technological tools that contribute to safety and security in an organization.

PepsiCo has achieved success both in the U.S. market and in the environment of the global economy. Although the company has a lot of achievements on which it can pride itself, including the outstanding quality of its products, it is the use of the technological systems that made it so famous in the global market in the first place. Keeping its focus on the current IT trends and incorporating them into the design of its new products and services, the interactive vending machine being one of the latest examples, the firm manages to stay relevant. Therefore, the dynamic capabilities of the company are in their peak shape.

Dynamic Capabilities of the Target Organization: Adapting toward the Market Changes

Although the food and non-alcoholic beverage Industry is doubtlessly a very competitive environment, PepsiCo has managed to not only survive but also strive in it. When searching for the explanation for the observed phenomenon, one must give the leaders of the entrepreneurship credit for using the dynamic capabilities of the organization in a sensible manner.

The first and most obvious, the fact that the organization has been using the principles of sustainable resource usage needs to be mentioned as one of the greatest advantages of the company’s current strategy (Barney, 1995). As a result, the company is able to focus on the areas that need extensive support by financing the related projects substantially.

Along with the application of the lean resources management strategy, the framework that the firm has been using as the means of incorporating the latest technological advantages into the design of its solutions deserves attention. For instance, PepsiCo was one of the first organizations in the food and non-alcoholic beverage industry to consider the creation of smart vending machines. With an interactive interface and extra opportunities for customers, the vending machines equipped with the latest IT innovations broke new grounds in the area of customer communication.

Therefore, it can be assumed that PepsiCo managed to adapt to the new market environment quite successfully. Since the focus on the IT innovations and the introduction of interactive interfaces have been the leading trend in the global market environment, the shift toward an improved customer communication can be considered a welcome change of pace.

Dynamic Capabilities as the Tool for Retaining the Competitive Advantage of the Company

It would be wrong to claim that the entire process of maintaining the competitive advantage of PepsiCo at the top of the global Food and Non-Alcoholic Beverage industry boils down to merely improving the technological infrastructure of the organization. Although admittedly important, the regular upgrade of the equipment used to retrieve, process, and transfer data is not the only factor that a firm needs to focus on in order to retain its competitive advantage in the global market.

As Teece, Pisano, and Shuen (1997) explain, it is imperative to incorporate every single asset of the company into a comprehensive plan that will allow using the available resources in a sustainable manner. Thus, success can be achieved. As the case of PepsiCo shows, Teece et al. (1997) obviously have a point, since the firm has also been geared toward increasing efficiency by putting the quality of the product at the top of its priorities’ list (Hamilton, 2013).

The capacity issues have also been addressed accordingly in the identified organization, which made PepsiCo one of the most successful and prolific manufacturers in the global economy realm (Kesner, Zack, & Russell, 2013). According to the description of the company’s current strategy, the use of the high-output assembly lines predetermined the triumph of entrepreneurship in the global market (Ghutke, Jaiswal, & Thakur, 2014). By building the environment in which the percentage of defects could be reduced significantly, and the quality of the customer care could be increased to a considerable extent, the organization managed to climb to the pinnacle of the global market.

The focus on an unceasing development created premises for addressing the issue of a temporary advantage mentioned by D’Aveni, Dagnino, and Smith (2010). Instead of coming up with a new idea for a competitive advantage on a regular basis, PepsiCo will improve its quality standards with every new change introduced to the realm of the global market.

Conclusion: Incorporating Technological innovations into the Supply Chain

The significance of making efficient use of the dynamic capabilities of an organization, particularly, the appropriate use of technology (especially IT devices) is crucial go the company’s performance in the target market, including the development of the competitive advantage that will allow it succeed in the environment of rivalry and a tight economy. As the case of PepsiCo shows, an organization needs to be inventive in its use of technology and incorporate IT devises to create new tools that will help it improve the communication processes.

In addition, the example of PepsiCo points directly to the fact that the use of the dynamic capabilities does not have to be restricted to the improvement of the promotion techniques through an update of the communication systems.

Instead, IT technologies can become the means of building an entirely new network within which the communication process will occur among the users of the product. Furthermore, the upgrade of the services with the introduction of an interactive interface for better usability of its vending machines can be viewed as a step in the right direction as it helps make the company’s services unique and easily distinguishable. Therefore, it can be assumed that PepsiCo has been using its dynamic capabilities to their full extent so far, therefore, maintaining a very strong presence in the target market.


Barney, J. B. (1995). Looking inside for competitive advantage. Academy of Management Executive, 9(4), 49-61.

D’Aveni, R. A., Dagnino, G. B., & Smith, K. J. (2010). The age of temporary advantage. Strategic Management Journal, 31, 1371-1385.

Ghutke, S., Jaiswal, R., & Thakur, A. (2014). Case analysis of 360 degree feedback. International Journal of Advance Research in Education, Technology & Management, 2(3), 202-206.

Hamilton, H. (2013). Sustainable food lab learning systems for inclusive business models worldwide. International Food and Agribusiness Management Review, 16, 33-38.

Kesner, R. M., Zack, M., & Russell, M. B. (2013). An integrative framework for the teaching of information management in a business context. Journal of Learning in Higher Education, 1(1), 1-18.

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Joumal, 18(7), 509-533.