Complete 3 page APA formatted essay: SSOrganizational Setting.
The expansion strategy saw the company introduce slightly above 45 manufacturing plants in the United States spread across 26 states. The manufacturing centers include the world’s largest food center that is located in Frankfort Indiana. “Currently, Frito-Lay has over 1800 distribution facilities and employs over 20,000 employees in addition to selling products in approximately 350,000 retail centers in the United States alone”(Wicklound & Alvers, 2001). In addition to this, Frito-Lay is also considered as one of the leading advertisers in the United States, a situation that has further strengthened the company’s market share as a leading marketer and snack manufacturer.
As stated by Lucas and Baroudi, (2004) Frito-Lay has been in operation since the early 1950s where the company’s growth is attributed to the aggressive marketing strategy that Frito-Lay employs. In addition to this, Frito-Lay is involved in the advertising business that implies that the company spends less on marketing. The excess funds that could alternatively have been used in marketing are therefore channeled towards an expansion strategy that has seen Frito-Lay’s sales volumes increase drastically over the years. Over the years, Frito-Lay has introduced into the snack market various products that range from potato chips to various types of cheese dips. The introduction of cheese dips was necessitated by the increased popularity of Mexican food which began to rise steadily in the early 1960s.
Today, it is estimated that a significant percentage of Frito-Lay’s dips are linked to vegetables, a situation that food and business experts attribute to low competition in this area. In addition to this, several researchers in food and nutrition have established that sour-based cream dips are increasingly becoming popular in the United States where Frito-Lay controls a significant market