The Role of IT/IS

Changing the basis of business competition entails the adoption of new methodology, which favors a business organization in the competition with its immediate industry competitors and outsiders. The utilization of IT/IS in the structuring of the means of changing the basis of business competition becomes considerably essential in this regard. Initially, IT/IS will be used to drastically change the PepsiCo cost structure inclusive of product or service provision. In this regard, the company would receive huge returns by incurring small expenses that boost its financial base. In addition, IT/IS influence the nature of the competitive position of PepsiCo within the industry. As a result, the company will alter its current position and increase the market share. This implies that PepsiCo would gain advantage over its competitors through the introduction of new services and products. Therefore, the competitive nature of PepsiCo would improve radically (Applegate, 1997). In this case, the initiator will benefit from the creativity and innovation.

The exploitation of IT/IS leads to generation of new products. Initially, if PepsiCo uses IT/IS, it will be able to produce unique and high quality products.  In addition, IT/IS facilitates an increase in the level of production from which products will be delivered faster and at lower costs. Having met the consumer needs, PepsiCo would adopt IT/IS to tailor its current products to meet customized and special needs of the consumers. In this case, the market share of the company would increase, while the electronic support services changes the perception of the company’s products. This is because the additional electronic services would improve the total package in the consumers’ minds. As a result, new products would be developed while enhancing the marketability of the existing products. Therefore, it implies that IT/IS is considerably essential in the creation of new products of the company to foster its competitiveness in the industry.