Company Analysis : Pepsico Company

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Exercise 1B, Step 4
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

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