Pepsi Corporation SWOT Analysis

adam June 3, 2010 Soft Drink & Beverage 2 Comments

Strengths

• The company has strong background established since 1903 as Pepsi Cola.

• Pepsi has been marketing its products in a strong way.

• Well known brand in the world

• Good sales and profit figures.

• Increase in mineral water and fresh juices market share.

• It has broader products width.

• Strong distribution channels.

• Pepsi sponsor number of sports event e.g. National Football League, National Hockey League and Major League Baseball. Pepsi also sponsors Major League Soccer.

Weaknesses

• Differences among the employees on basis of racism.

• Facing strong competition in mineral water market from Nestle.

• Pepsi is far away from Coca Cola as far as financials and brand image is concerned.

Opportunity

• Growth in mineral water segment.

• Food products should be promoted in untapped areas.

• Launch health drinks in India to improve the brand image in the eyes of customers

• Joint ventures

• Focus on social responsibility and sponsoring events.

Threats

• Food and beverages industry is mature.

• Pepsi was blamed in multiple occasions for excess percentage of pesticide in their products.

• People are more health conscious so they prefer healthy drinks and juices.

• Ongoing recession in majority of countries.

• Random Currency fluctuation

• Political instability and tax policies.

• Pepsi is competing with major competitors in various segments such as Coca cola in beverage, nestle in water and Kraft foods.

• Company majority of sales are dependent on few products which is major risk.

• Entry of new entrants

• Coca Cola outsells Pepsi in US Market.

Free SWOT Analysis

Pepsi Corporation SWOT Analysis

Strengths

Weaknesses

Opportunity

Threats

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