IV) SWOT analysis of PEPSICO
Swot consists of examining the current activities of the organization: its strengths and weaknesses, and then using this and external research data to set out the opportunities and threats that exist.
Strong market position
PepsiCo has a tremendous presence on the snack and soft drink market. Indeed, the company owns 25% of the non-alcoholic drinks market and 39% of the snack market. •
Good economic situation
In 2008, PepsiCo was ranked 26th on the top 100 of the global brands ranking in 2008. The same brand value company has raised PepsiCo as an example during the recession: “Amazon, Pepsi, Audi, Panasonic, and Campbell’s have all prospered during a challenging year for marketing executives.” PepsiCo’s most famous brands are all very famous and successful. Thanks to this notoriety, PepsiCo’s annual sales reach $35 billion. •
Popularity of brands
Pepsi has a wide range of brands. These brands are more famous than the Coca Cola Company’s ones. For example: people know what Lipton Teas, Tropicana beverages or Doritos Tortilla Chips refer to, whereas: who has heard of Epika, Chinoto or Spur? On this point, PepsiCo is inexorably in a strong position. •
PepsiCo has spread its presence in over 200 countries. Products from this brand are sold all over the world. •
PepsiCo’s brands include drinks and snacks such as ready-to-drink refreshments, bottled water, cereals, crisps or school-snacks. This wide range of product enables the brand to settle down in any place of the world.
PepsiCo tends to focus its activity in North America (US, Canada, Mexico). Almost 70% of revenues come from this region.
Dependence on important clients
A big part of PepsiCo’s sales (12%) are made to Wal-Mart, which creates a dependence supplier-client. Consequently, Wal-Mart’s strategy influences PepsiCo’s actions, especially on lowering prices.
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