Swot Analysis Of Pepsi Co.
Essay by 24 • January 1, 2011 • 419 Words (2 Pages) • 1,962 Views
Strength
* Pepsi has a broader product line and outstanding reputation.
* Merger of Quaker Oats produced synergy across the board.
* Record revenues and increasing market share.
* Lack of capital constraints (availability of large free cash flow).
o Great brands, strong distribution, innovative capabilities
o Number one maker of snacks, such as corn chips and potato chips
* PepsiCo sells three products through the same distribution channel.
For example, combining the production capabilities of Pepsi, Gatorade and Tropicana is a big opportunity to reduce costs, improve efficiency and smooth out the impact of seasonal fluctuations in demand for particular product.
Weakness
* Pepsi hard to inspire vision and direction for large global company.
* Not all PepsiCo products bear the company name
* PepsiCo is far away from leader Coca-cola in the international market - demand is highly elastic.
Opportunity
* Food division should expand internationally
* Noncarbonated drinks are the fastest-growing part of the industry
* There are increasing trend toward healthy foods
* Focus on most important customer trend - "Convenience".
Threats
* F&B industry is mature
* Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market e.g in India
* Over 50 percent of the company's sales come from Frito-Lay; this is a threat if the market takes a downturn
* PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft foods (because of broader product line) which
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