SWOT Pepsi
What makes international food companies so successful?
As an example: SWOT on Pepsi Co
1.Extrernal origin:
1.1. Opportunities:
Opportunities in International Markets: consumption of their products is still relatively low overseas, there is a significant opportunity to grow in the global market by expanding existing businesses and through acquisitions, especially in up and coming markets (mostly 3rd world countries)
With innovative marketing: beverage and food players can build growth for their brands by highlighting their benefits, for instance healthiness in the cases of caffeine-free drinks, diet and snacks.
High entrance barriers: It is highly difficult for the new entrants to enter in the soft drink industry because of some factors such as brand image and loyalty, bottling network, advertising expense, retail distribution and fear of retaliation.
Growing Snack trend: Snacking "is a long-term trend and the future of eating," it is projected that growth in snacks market would be reached at the $560 billion.
1.2.Threats:
Competition: The food and beverage industry is very competitive market with PepsiCo’s top competitors being Coca-Cola, Dr. Pepper, Snapple, and Kraft Foods.
Commodity prices: Rises in commodity prices can potentially reduce profits for PepsiCo by increasing the cost of goods sold.
Low growth rate in carbonated drinks:Low growth rate in carbonated drinks, which is recorded less than one percent in primary market of Pepsi.
Local players:Pepsi is facing the tough competition from local brands in all over the world such as in Central and South America Kola Real also known as Big Cola in Mexico is giving tough competition to Pepsi etc.
2.Internal Origin:
Strengths:
Brand Recognition: PepsiCo, Frito Lay, Gatorade, Quaker, and Tropicana.
Brand Loyalty: PepsiCo has loyal customer base for its products.
Brand Diversification: PepsiCo not only produces Pepsi-Cola but snack products and juices as well.
Global Participation:
As an example: SWOT on Pepsi Co
1.Extrernal origin:
1.1. Opportunities:
Opportunities in International Markets: consumption of their products is still relatively low overseas, there is a significant opportunity to grow in the global market by expanding existing businesses and through acquisitions, especially in up and coming markets (mostly 3rd world countries)
With innovative marketing: beverage and food players can build growth for their brands by highlighting their benefits, for instance healthiness in the cases of caffeine-free drinks, diet and snacks.
High entrance barriers: It is highly difficult for the new entrants to enter in the soft drink industry because of some factors such as brand image and loyalty, bottling network, advertising expense, retail distribution and fear of retaliation.
Growing Snack trend: Snacking "is a long-term trend and the future of eating," it is projected that growth in snacks market would be reached at the $560 billion.
1.2.Threats:
Competition: The food and beverage industry is very competitive market with PepsiCo’s top competitors being Coca-Cola, Dr. Pepper, Snapple, and Kraft Foods.
Commodity prices: Rises in commodity prices can potentially reduce profits for PepsiCo by increasing the cost of goods sold.
Low growth rate in carbonated drinks:Low growth rate in carbonated drinks, which is recorded less than one percent in primary market of Pepsi.
Local players:Pepsi is facing the tough competition from local brands in all over the world such as in Central and South America Kola Real also known as Big Cola in Mexico is giving tough competition to Pepsi etc.
2.Internal Origin:
Strengths:
Brand Recognition: PepsiCo, Frito Lay, Gatorade, Quaker, and Tropicana.
Brand Loyalty: PepsiCo has loyal customer base for its products.
Brand Diversification: PepsiCo not only produces Pepsi-Cola but snack products and juices as well.
Global Participation: