Introduction
According to the oxford dictionary a SWOT analysis is “a study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats.” PepsiCo is a leading multinational food and beverage company that owns several hundreds of brands such as Pepsi, Tropicana and Quakeroats. This is a report based on the SWOT analysis of PepsiCo.
Strengths
PepsiCo is a large global company that has many strengths and advantages. One of Its main strengths is that its product range is diverse; this means that it doesn’t rely on a few key products or seasonal sales and isn’t significantly affected by changes in customer tastes. PepsiCo also has an extensive distribution channel
…show more content…
In addition, if PepsiCo were to lose Wal-Mart it would mean losing 13 percent of its revenue and competitive advantage. Another weakness is that PepsiCo products are perceived as low quality; this is because they price their goods at a much lower rate than their competitors. There are other reasons other than lower pricing that may lead to the belief that their products are low quality; some of those reasons have to do with their questionable practices. PepsiCo has been criticized for using water that has a higher than allowed amount of pesticides in it and has been accused of selling tap water. (www.cbsnews.com) PepsiCo tends to have a competitive disadvantage because of other competitors in their market being more successful. An example of this is The Coca Cola Company, which has the largest market share of beverages in the world. PepsiCo’s net profit margin is 9.7% compared to Coca Cola’s 18.55% and Nestlé’s 11%. (www.sec.gov)
Opportunities
Selling beverage and food in a globalized and growing market can mean a lot of opportunities for firms. PepsiCo has invested a lot in BRIC countries in hopes of expanding its market share, as these countries are currently the fastest growing food and beverages markets in the world. If PepsiCo is successful this will mean a significant increase in its revenues and global market share. Another positive to this is that this may mean it will be able to rely less on the US market. Due to changes in lifestyle and an increase in
According to Nicole Fallon of the Business News Daily, a SWOT analysis is an analytical framework that can help any company face its greatest challenges and find its most promising new markets, by identifying the organization’s strengths, weaknesses, opportunities and threats (2017). It allows for an extensive evaluation of the company’s internal and external resources as well as current and future threats that the company may face. This process can be a great asset in determining and exploring new initiatives, as it helps to identify areas of improvement within the organization while helping with the facilitation and implementation of new business policies. This process is crucial in refreshing the strategies and tactics of any
The SWOT analysis is a great way for companies or organizations to determine their brand and product’s strengths, weaknesses, opportunities, and threats. In order to more effectively determine these areas, separation of internal and external issues within the company or association is crucial.
Many brands and products fall under the PepsiCo umbrella. With over 22 brands generating at least $1 billion in retail sales, including Doritos chips, Quaker oatmeal, Gatorade sports drinks and Mountain Dew soda (Esterl ,2014). Less than half of PepsiCo’s sales are from the sale of soft drinks. Despite the fact that beverage sales make up less than half of all incoming revenue, PepsiCo is often seen as a soft drink manufacturer. (Trefis Team 2015).”
The Coca-Cola company has been in business since its inventor began selling it in drug stores in 1886 (The Coca-Cola Company, 2009). Pepsi-Cola was invented a short time later in 1898, but at the time it was called “Brad’s drink.” It was later renamed Pepsi-Cola in 1902 (Butler, 2006). Since those early days when the sodas were invented, Coca-Cola and Pepsi have been in competition with each other for the domination of the world’s soda market. Over the course of more than a century, sales have continued to rise for both companies, and they both consistently earn a profit. Both companies
PepsiCo is driven by the competitive spirit of the market which they use it to provide solutions that would help their company as well as others.
The net profit was $6,320 million in FY2010, an increase of 6.3% over 2009 ($5,946). As stated in the mission statement, they seek to produce financial rewards. With the numbers previously mentioned, we can see they have succeeded. This significant financial performance gives them the resources they need to provide opportunities for growth and enrichment to their employees, their business partners and the communities in which they operate and to invest in the four key areas (performance, human sustainability, environmental sustainability and talent sustainability) so they can reach their goals. (Yahoo Finance, 2011) 4. Conduct a competitive and marketing analysis of the organization to determine strengths and opportunities. PepsiCo is the largest snack and non-alcoholic drink producer in the United States, with 39% and 25% of the respective market shares. PepsiCo operates in over 200 countries, with its largest markets in North America and the United Kingdom. PepsiCo has three direct competitors, the Coca-Cola Company, Dr. Pepper Snapple Group, and Kraft Foods. Unlike its major competitor, Coca-Cola, the majority of PepsiCo 's revenues do not come from carbonated soft drinks. In fact, beverages account for less than 50% of total revenue. Additionally, over 60% of PepsiCo 's beverage sales come from its key noncarbonated brands like Gatorade and Tropicana. PepsiCo 's revenues
Jones Soda Company was founded by Canadian ski instructor Peter van Stolk. The soft drink company was not being sold alongside other larger reputed brands such as Coca Cola or Pepsi. The soft drinks were sold in skateboard shops and tattoo parlors to consumers who were looking for a drink that matched their lifestyle. Its unique style was evident by its use of bottles that resembled classic beer bottles and by pricing higher than for regular soft drinks.
Lastly, the internal weakness of PepsiCo is that the company is facing a negative publicity. There are doubtful practices which accused PepsiCo is using and selling tap water. However, the company places view of mountains on its water bottle labels. The public claim that the company deceiving people to believe it
This research paper pinpoints the financial analysis of Pepsi Co, Inc., namely its profitability; liquidity; solvency and operating outcome with respect to its competitors, Coca-Cola Inc., and Dr. Pepper Snapple Group. The upshot of Pepsi’s financial breakdown will assist the soda drink maker to improve its production approach and keep its flagship brand aggressive and competitive.
This paper focuses on global business strategy of The Coca-Cola Company, who is the leader in the beverage industry as well as, the world?s leading soft drink maker that operates in more than 200 countries and owns or licenses 400 brands of nonalcoholic beverages. The paper will concentrate on the PESTEL analysis of the organization focusing on the external factors of the business and the environment where it operates. All of the following environments will be discusses in the research; Political, Economic, Sociological, Technological, Legal, and Environmental as they the changes in the market segment. Within this paper it will discuss some of thr
SWOT analysis stands for Strength, Weakness, Opportunity and Threat analysis. This section talks about the SWOT analysis of Coca Cola generally in Table 1 and three points among Table 1 will be explained further in the following paragraphs. Firstly, Coca Cola’s strength analysis which is titled as the top three of the Best Global Brands in 2013. Secondly, it’s main weakness which is the danger in consuming soft drinks for health. Lastly, PepsiCo as Coca Cola’s major threat among other companies.
In addition, PepsiCo International division includes all the PepsiCo snacks, beverages, and food items sold outside North America. They are doing extremely well in emerging markets such as Russia, the Middle East, and Turkey. As for Chile, the sales are a little lousy. They find that the Power of One strategy works there since Frito-Lay has 90 percent of the market. Again, the Power of One strategy is simply placing PepsiCo products next to Frito-Lay products.
“Coca-Cola brands are available to consumers throughout the world. Today they account for 1.7 billion servings of all beverages consumed worldwide daily. Coca-Cola has the edge in the market and because they are first to capitalize on new consumer trends. They continue to focus on continuous operating improvements, and they are ever changing to meet market demands. Pepsi Co satisfies the needs of its customers with the wide variety of products offered. They also have the different type of beverage or snack and its brands can substitute for each other. Coco-Cola and Pepsi Co is known as the top 100 most valuable brands in the world.
PepsiCo Inc. is one of the leading brands in the world's food and beverage industry. It operates globally with a strong customer base and a wide array of products. This paper analyzes the general business environment for this leading food and beverage brand in order to assess what strategies it has been pursuing to operate in this challenging and complex environment. The analysis of internal and external environment has also been done in a view to figure out the biggest strengths, weaknesses, opportunities, and threats for the company. The final section gives an overview of the company's resources, capabilities, core competencies, and value chain which can help it to achieve a competitive advantage in its industry.
According to PepsiCo SWOT, “it is better equipped to satisfy the needs of customers with a wide variety of successful products” (2008). PepsiCo managed to present almost every type of drink and food brands. The merchandise that is earned is the majority of their revenue. This makes them extremely at risk to change any of their marketing products. However