Company Analysis : Pepsico Company

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Exercise 1B, Step 4 PEPSICO Company a) Strengths 1. Branding-ranked 26th among top 100 worldwide brands 2. Product diversity- annual sales of over $ 1,000 million 3. Extensive distribution channel- 3 times faster product distribution 4. Corporate social responsibility projects- reaching over 50% of customer base 5. Competence in acquisitions and mergers- owns over 60% of the mergers 6. High profitability- 22 brands earning $1 billion a year (Keller, 1991). 7. Successful advertising and marketing campaigns- reaching over 80% of customers 8. Complementary product sales- controlling 50% of the market 9. Proactive and progressive- ranked 26th globally 10. High market position- 2nd after Coca-Cola b) Opportunities 1. Broadening of product…show more content…
Negative impact of government regulations- 10% decline on profits 3. Intense competition-2% fall in product prices 4. Potential disruption because of labor unrest- shutting of production for one month in 2008 5. Changes in consumer tastes-1% loss of customers 6. Water scarcity-daily loss of 1000 gallons of water 7. Decreasing gross profit margin- 5% loss in profits due to competition 8. Strong dollar 9. Negative implications of legal procedures 10. Increased competition from Snyder- lost 1.6% market share to Snyder d) Weaknesses 1. Overdependence on Wal-Mart- Wal-Mart possess 13% of its net revenue 2. Overdependence on US Markets- 52% of revenues come from the US 3. Low productivity- $219, 439 revenue per employee in 2008 4. Image damage because of product recall-1% reduction in customer confidence 5. Low pricing-$1 lower than other products 6. Questionable practices- using tap water as opposed to mountain spring water as labeled 7. Weaker brand awareness 8. Weaker market share- 10% lower than Coca-cola 9. Low net profit margin- 9.7% compared to Coca-Cola’s 18.55% 10. Lack of knowledge on target demographic Exercise 10 D List of spying activities 1. Listening to competitor conversations- U and L 2. Monitoring competitor website content and performance- E and I 3. Monitoring competitor advertising efforts- E and L 4. Using a grading tool to perform a comparison between competitor performance with yours- E and L 5. Signing up for Google alerts- E and L 6.
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