Commencing operations inPepsiCo has become the second largest food and beverage company in the world today. So, is it too late to build positions in this well-run food and beverage outfit?
This followed incidents of exploding Diet Pepsi cans in This breadth of experience should serve Ms. This may indicate comparatively low productivity on the part of PepsiCo employees.
Increase penetration into developing countries and capture their market 2. It has a growing roster of noncarbonated beverage lines, however, such as Gatorade sports drinks and Lipton teas, that are supporting volumes. Threats PepsiCo and Coke have been main targets in India because they are familiar foreign firms.
This SWOT analysis shows that PepsiCo is positioned to grow and reach the top position in the global food and beverage industry.
Much of the recent growth has come from new products, with the company getting a nice boost from Quaker oatmeal breakfast bars, flavored Aquafina sparkling waters, and Mountain Dew Black Label drinks.
With all this in mind, we would encourage long-term investors, seeking decent growth and steady dividend income, to consider accumulating PEP shares. The realistic actions that PepsiCo could take to improve its competitiveness and international growth are as follows: And business throughout the eurozone may well deteriorate in the wake of the U.
And soda consumption is apt to continue waning, especially in the core North American market, as more consumers seek out healthier alternatives.
In addition, PepsiCo can create alliances with complementary business to increase its market presence. We attribute this relative strength to a string of better-than-expected quarterly financial reports, even in the face of foreign exchange pressures and a volatile and uneven global macroeconomic environment.
Inlation, economic slowdown and instability causes decline in the purchasing power of consumers 4. To improve its brand image by involving in more CSR activities to benefit the locals Threats 1. Salty snacks, importantly, are a growing consumer category, whereas demand for carbonated drinks has been on the decline for a while.
No competitor has as many high earning brands as PepsiCo. Also, PepsiCo fails to effectively market many of its products to health-conscious consumers. We would expect similar cash returns to investors in the years ahead, given the bright fundamental picture here. This draws abundance of attention and strong criticism by different groups.
Numerous substitutes such as water, juices, coffee and beer etc are available to the end consumers.
View all posts by Tim Friesner Posted on. Top 10 best-selling U. Pepsi Refresh Project that funds new ideas or ventures that have the potential to benefit the society 8.
PepsiCo also hopes to take further aim at its corporate overhead by relying more on teleconferencing, thus reducing employee travel expenditures.
Intense competition may influence pricing, advertising, sales promotion initiatives undertaken by PepsiCo. This aspect of the SWOT analysis indicates that PepsiCo must reform its strategies to overcome the threats to business. Consumers accounted finding pins, screws and a bullet in their Diet Pepsi.
In this Industry Pepsi is fighting against increasing taxes on soft drinks. In addition the company plans on major capital initiatives in Brazil and Mexico. Excellent branding and advertising with global celebrity as brand ambassadors PepsiCo, which formed in through the merger of Pepsi-Cola and Frito-Lay, has roots as far back as the s.
It is a leading manufacturer and marketer of convenient snacks, foods, and carbonated and noncarbonated beverages, with annual revenues of around $63 billion and a global headcount ofemployees. PepsiCo’s SWOT analysis presents major challenges in the areas of competition, changing consumer behaviors, and product development.
PepsiCo’s Strengths (Internal Strategic Factors) PepsiCo’s continued global growth and prominence reflects the company’s strengths.
This Coca Cola SWOT analysis reveals how the company controlling one of the most iconic brands of all time used its competitive advantages to become the world’s second largest beverage manufacturer. Similar analysis has also been done for the competitors of PepsiCo belonging to the same category, sector or industry.
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