Swot Analysis : Pepsico's Competitors

959 WordsOct 26, 20174 Pages
Similar to the beverages industry, an increase of consumer awareness of health effects and government regulations is majorly impacting the snack industry. According to Henkes (2017), production costs will increase by at least 50% within the next 5 years due to new requirements and consumer trends such as the source of ingredients, nutritional values, organic, certified, health and wellness, and accountability. Despite the increasing costs, the most recent global survey, Snack Attack, indicated that the industry will grow to be $375 billion worldwide as 75% of the world consumes snacks to satisfy hunger, cravings, or enjoyment (Fromm, 2015). Thus, the snack industry has great opportunity and growth potential. SWOT Analysis for PepsiCo’s…show more content…
Despite temporary financial setback, this expansion provides Coca-Cola many opportunities. For instance, through strategic acquisition, Coca-Cola extended its services and products to Africa, Brazil, Mexico, and Argentina, in 2016 (Company Profile: The Coca-Cola Co., 2017). The company is planning more agreements and acquisitions, strengthening its market control. Moreover, this tactic increases the company’s capabilities and resources to better meet the growing global demand for products. Major threats for Coca-Cola include the health advocacy programs to fight obesity, diabetes, and other conditions by reducing the consumption of sweetened beverages (Curbing Global Sugar Consumption, 2015). This has lead to reduction of sales, more stringent regulations, and increases in production costs through taxes, ingredient changes, and regulation oversight. This threat impacts the overall profitability of the company. Another PepsiCo competitor is Dr. Pepper Snapple Group, a manufacturer and distributor of carbonated soft drinks, juices, teas, and water. Through the company’s focus on research and development, it enables products to more easily be tailored to customer requirements and taste preferences. Dr. Pepper Snapple Group has an extensive manufacturing and distribution network, allowing the company to align its operations with the customer demand, reduce transportation costs,

More about Swot Analysis : Pepsico's Competitors

Open Document