Swot Analysis Of Pepsi Co.

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