The company grows despite an increasing level of market saturation. This SWOT analysis shows that PepsiCo is positioned to grow and reach the top position in the global food and beverage industry.
As of it ranked 26th amongst top global brands. These recent initiatives will enable PepsiCo to adjust to the changing lifestyles of its consumers. Both initiatives are part of its expansion into international markets and a lessening of its dependence on US sales.
In addition the company plans on major capital initiatives in Brazil and Mexico. Products such as Aquafina, and Propel are well established products and in a position to ride the upward crest.
Threats Decline in Carbonated Drink Sales — Soft drink sales are projected to decline by as much as 2. PepsiCo is in the process of diversification, but is likely to feel the impact of the projected decline.
Potential Negative Impact of Government Regulations — It is anticipated that government initiatives related to environmental, health and safety may have the potential to negatively impact PepsiCo. For example, manufacturing, marketing, and distribution of food products may be altered as a result of state, federal or local dictates.
Preliminary studies on acrylamide seem to suggest that it may cause cancer in laboratory animals when consumed in significant amounts. If the company has to comply with a related regulation and add warning labels or place warnings in certain locations where its products are sold, a negative impact may result for PepsiCo.
Intense competition may influence pricing, advertising, sales promotion initiatives undertaken by PepsiCo. In a strike in India shut down production for nearly an entire month. This disrupted both manufacturing and distribution.
Take a journey through our past and see the key milestones that define PepsiCo.
This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only. This broad product base plus a multi-channel distribution system serve to help insulate PepsiCo from shifting business climates.
Distribution — The company delivers its products directly from manufacturing plants and warehouses to customer warehouses and retail stores.
This is part of a three pronged approach which also includes employees making direct store deliveries of snacks and beverages and the use of third party distribution services.
This concentration does leave PepsiCo somewhat vulnerable to the impact of changing economic conditions, and labor strikes. Low Productivity — In PepsiCo had approximatelyemployees.
This may indicate comparatively low productivity on the part of PepsiCo employees. This followed incidents of exploding Diet Pepsi cans in Such occurrences damage company image and reduce consumer confidence in PepsiCo products.
Published by Tim Friesner Marketing Teacher designs and delivers online marketing courses, training and resources for marketing learners, teachers and professionals. View all posts by Tim Friesner Posted on.SWOT Analysis of PepsiCo STRENGTHS One of PepsiCo's major strengths is their high market position.
Other strengths are their brand, they are an international company, they have a variety of products, distribution, and successful advertising. A Quick SWOT Analysis Justin Hellman | August 15, PepsiCo (PEP) shares, among the bluest of the blue chips, have continued their winning streak thus far in , outpacing the broad-based S&P Index by about two percentage points year to date.
In this aspect of the SWOT analysis, PepsiCo’s strengths are sufficient to support its global growth strategy. PepsiCo’s Weaknesses (Internal Strategic Factors) PepsiCo suffers from a number of weaknesses that act as barriers to international growth.
Internal Factors - Strengths and Weaknesses The internal analysis of your organization should include its culture, expertise, resources, and unique qualities within the market place.
The extent to which your organization could adapt to changing circumstances is also a factor that needs to be considered. Strengths in the SWOT Analysis of PepsiCo: Brand equity: it is one of the most prominent and famous brands in the world in the food and beverage sector.
It is also known as the brand of youth. It has a high brand recognition and reputation. It has a brand valuation of $ billion and it is ranked 29 in the Forbes most valuable brands list.; Product .
Would you like a lesson on SWOT analysis? Strengths. Branding – One of PepsiCo’s top brands is of course Pepsi, one of the most recognized brands of the world, ranked according to Interbrand. As of it ranked 26th amongst top global brands. Pepsi generates more than $15, million of .