Swot anal

Pepsi-Cola’s SWOT Analysis – Recommendations

Pepsi-Cola can use its strengths to effectively respond to the issues identified in
this SWOT analysis, especially those considered as threats. The realistic actions that
Pepsi-Cola could take to improve its competitiveness and international growth are as
follows:
1. Diversify businesses to minimize market risk exposure
2. Further penetrate developing markets to grow revenues
3. Improve product healthfulness to attract more consumers
4. Enhance recycling efforts to address environmentalism
Internal Strategic Factors

Pepsi-Cola’s continued global growth and prominence reflects the company’s

strengths. This aspect of the SWOT analysis framework outlines internal strategic
factors that enable firms to fulfill their business goals. The following are the most
significant strengths of PepsiCo:
1. Strong brand image
2. Broad product mix
3. Extensive global production network
4. Extensive global distribution network

As a successful global company has one of the strongest brands in the market. This
strength enables the firm to attract consumers to its new products. In addition, the
broad product mix represents Pepsi-Cola’s increasing ability to reach various markets
and segments, such as through Frito-Lay products, Quaker products, and Pepsi
products. Pepsi Cola’s extensive global production and distribution networks are
strengths that support the company’s international growth and expansion strategies.
In this aspect of the SWOT analysis, Pepsi Cola’s strengths are sufficient to support
its global growth strategy.

Pepsi-Cola’s Weaknesses (Internal Strategic Factors)

Pepsi-Cola suffers from a number of weaknesses that act as barriers to

international growth. The internal strategic factors that limit organizational
development are considered in this aspect of the SWOT analysis framework.
1. Low penetration in Asia
2. Limited business portfolio
3. Weak marketing to health-conscious consumers
Pepsi Cola derives about 70% of its revenues from markets in North America and
South America. This weakness indicates that the company has not yet maximized
potential revenues outside the Americas. In addition, PepsiCo operates primarily in
the food and beverage industry. This is a weakness because it maximizes the
company’s vulnerability to risks in the food-and-beverage market. Also, PepsiCo fails
to effectively market many of its products to health-conscious consumers. This aspect
of the SWOT analysis highlights weaknesses that PepsiCo must address through
changes in its
growth strategy.

Opportunities for Pepsi Cola (External Strategic Factors)

Pepsi-Cola has opportunities for continued global growth. In this aspect of the SWOT
analysis framework, external strategic factors that provide options for business
improvement are identified. Pepsi-Cola opportunities are as follows:
1. Business diversification
2. Market penetration in developing countries
3. Global alliances with complementary businesses
Pepsi-Cola has the opportunity to diversify its businesses, such as by acquiring a
complementary firm that is not in the food and beverage industry. Another
opportunity is for PepsiCo to increase its penetration in developing countries to
generate more revenues from markets outside the Americas. In addition, PepsiCo can
create alliances with complementary business to increase its market presence. Based
on this aspect of the SWOT analysis, PepsiCo has significant opportunities to
strengthen its business resilience.
Threats Facing Pepsi-Cola (External Strategic Factors)

The food and beverage industry experiences a variety of threats. External

strategic factors that could reduce business performance are considered in this aspect
of the SWOT analysis framework. In Pepsi-Cola’s case, the following are the most
significant.
threats:
1. Aggressive competition
2. Healthy lifestyles trend
3. Environmentalism

Aggressive competition is a major threat against the company. The influence of the
Coca-Cola Company is especially significant against Pepsi-Cola. In addition, the
healthy lifestyles trend is a threat against Pepsi-Cola’s products, many of which are
seen as unhealthful because of their sugar, salt, or fat content. Also, environmentalism
threatens the company in how consumers negatively respond to product waste and
Life cycle issues. This aspect of the SWOT analysis indicates that Pepsi-Cola must
reform its strategies to overcome the threats to business.