SWOT Analysis of PepsiCo

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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.

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
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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)

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

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