Professional Documents
Culture Documents
2. Headquartered in New York, the US-based PepsiCo is one of the world’s leading
beverage and snacks food companies. In its 2002 annual report, the company
claimed to have the largest share in the US beverage markets. Analysts felt that
one of the main reasons for the company’s massive growth over the decades and
the leadership status it has acquired in almost all its business segments was
PepsiCo’s efficient distribution and logistics management operations.
Depending on the product involved, PepsiCo chose between various standard
distribution methods employed, such as the Direct Store Delivery System, the
broker warehouse system, the vending and foods service system, and the pre-sell
method.
Answer: Process Innovation, because it was stated in the case that
PepsiCo has various systems that allow the company to grow year after year,
eventually leading to the company being one of the world's leading beverage
and snack food companies.
3. In January 2000, the American International Group, Inc. (AIG), the global
market leader in insurance and financial services, launched the AIG e-business
risk solutions (AIG eBRS) exclusively to address the risks associated with online
businesses, popularly known as e-business or e-commerce.
Answer: Disruptive Innovation, this is a new market type of disruptive
innovation business that competes against non-consumption in lower margin
industries. Introducing a new product or service and converting non-consumers
into customers. Nowadays, e-commerce is one of the most effective businesses,
especially because technology has such a large impact on society.