A SWOT ANALYSIS FOR PEPSI COLA COMPANY.
A SWOT Analysis for PepsiCo, Inc.
PepsiCo is a multinational company that deals with foods snacks and beverages. PepsiCo is the second largest food and beverage Company in the whole world. VASUDEVA (2006), the success of the company has been associated with the manager’s ability to utilize the various analytical tools to understand both internal and external strategic factors that affect the performance of the company. SWOT analysis is one the fundamental tools that the company managers have been using to explore and understand the different external and internal strategic factors that impacts the performance of the company (FERRELL & HARTLINE 2011). The acronym SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
Some of the PepsiCo impressive strengths include: the company owns one of the diversified product portfolios which are snack foods and beverages; the company has outlets in more than two hundred countries in the world thus making it easier to reach many customers. The company has very good marketing teams which have played a huge role in the branding and marketing of the products globally. The companies have an excellent supply chain network that ensures the products are at the right place and time as and when needed hence winning customers loyalty (Dhar et al. 2005). Moreover, the company is involved in sponsorships of global sports as a corporate social responsibility, and this has acted a good promotion and has earned the company customer loyalty.
The company suffers from various drawbacks, and they have derailed the company from overtaking the leader coca-cola. The weaknesses include; the company’s products are more oriented to the young generation, targeting the youths is critical since they are very dynamic in their tastes and preferences hence making the company’s market unstable (Dhar et al. 2005). The company though it has outlets in more than 200 countries, it is more dependent on the American market thus allowing its rival to exploit the other markets.
The company has various opportunities at its exposure that it can utilize to overcome its main competitor coca-cola. Some of the opportunities include: the company diversification to snack food and beverages gives it a competitive advantage over its competitors since it can increase the portfolios by introducing other beverage or food products (Dhar et al. 2005). The company has an opportunity to penetrate to the developing countries and where there are large market and less competition. Moreover, the company can expand to the production of healthy drinks and bottled water which have been doing well in the recent past.
Threats facing PepsiCo
Despite the many opportunities, the company success is limited by various threats; they include: PepsiCo face stiff competition from the likes of Coca-Cola Company, the Kraft Food and the Dr. Pepper’s Snapple Group. The healthy lifestyle trend has also been a major threat to the success of the company; many people are not comfortable with PepsiCo products due to the high amount of sugars to the beverages and soft drinks and fats in the snack foods (Taylor et al. 2010). Moreover, there is a decline in the demand for carbonated drinks, and this will affect the company sales volume.
In conclusion, SWOT analysis is an essential tool that helps the managers to use the company’s strengths to overcome the weaknesses and utilize the available opportunities to overcome the threats that would limit the company’s success.
Dhar, T, Chavas, J, Cotterill, R and Gould, B (2005). An Econometric Analysis of Brand-Level Strategic Pricing between Coca-Cola Company and PepsiCo. J Economics Management Strategy, 14(4), pp.905-931.
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FERRELL, O C & HARTLINE, M D (2011). Marketing strategy. Australia, South-Western Cengage Learning.
Taylor, F, Satija, A, Khurana, S, Singh, G and Ebrahim, S (2010). Pepsi and Coca Cola in Delhi, India: availability, price and sales. Public Health Nutr., 14(04), pp.653-660. Bottom of Form
VASUDEVA, P. K. (2006). International marketing. New Delhi, Excel Books.
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