Promoli.net

How good is Wal-Mart going to be?

Wal-Mart is holding up well in a tough business environment. They are increasing market share and they’re buying back their own shares at prices that may look a steal in 18 months time.

At the same time as they are putting investment into their growing international operations, they’re also shoring-up and strengthening their domestic base. The results are now showing up on the bottom line figures for investors.

But always bear in mind – like McDonalds as was, Wal-Mart still faces media pressure from civil activists, which isn’t going to do much for its reputation and therefore, indirectly, its ability to expand.

Pepsico has always worked hard to keep a diverse portfolio – this will definitely mitigate the impact of falling markets.

In spite of this, Pepsico is still firmly reliant on its core America/Canada operations. In overall terms, the company has a much lower global reach when compared to its chief rival – you know who… (if you’re old enough to remember that ad)

Additionally, the aggregation of food retailers has diminished Pepsico’s chances of keeping the prices somewhere near where it wants them – this, and rising material costs – hitting everything – keeps the pressure on the company.