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Pepsi Co Swot

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PepsiCo

SWOT Analysis

Strengths

• Established name and good reputation

• Wide range of products (Diversification)

• Vast distribution channel and easy availability

Weaknesses

• Competitors such as Coca Cola have more market share

• Targets only young customers on promotions

• Overdependence on Wal-Mart

• Overdependence on US markets

• Low productivity

• Image damage due to product recall

Opportunities

• New product can easily penetrate in the market

• Internet promotion and ordering processes

• Broadening of product base

• International expansion

• Growing savoury snack and bottled water market in US

Threats

• Tough rivalry from competitors

• Rising costs in raw materials and travel expenses

• Substitutes (decline in carbonated drink sales)

• Potential negative impact of government regulations

• Potential disruption due to labour unrest

PESTLE Analysis

Political

• Raw material prices becoming worrying

• Land acquisition for new factories

• Government focusing on stricter water pollution norms

• Supposed to maintain firm standard laws set by the FDA

• Competitive pricing

Economic

• New opportunities in other countries

• Fuel price

• Availability of labour

• Economic downturn

Social

• Replenishing water

• Partnership with farmers

• Solid waste management program

• Impact on youngsters

• Different cultures

• Communicate as a global brand

Technological

• Operates in almost all countries

• Newer and more attractive designs

• Newer and better manufacture

• Social media

Legal

• Cross border policies

• Standards and regulations

• Health and safety

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