PepsiCo (PEP) SWOT Analysis

PepsiCo (PEP) SWOT Analysis

Strengths

Geographically Diverse Business Geographically diverse business and revenue should help shield the business from shocks in any one...
Brand name Geographically diverse business and revenue should help shield the business from shocks in any one...
Economies of Scale Large countries also have economies of scale. More people can produce more goods and seek synergies...
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Loyal Customer Base The company has a loyal customer base. This is always a strength when a company is able to keep...
Market Leader - Frito Lay Frito Lay has been around for a long time and has made its reputation and standing as a market...
Strong Brand Name For Frito Lay The company has strong brand name worldwide.
Legacy Of Michael Jordan Gatorade endorsed Michael Jordan for most of his career. Having Michael as the face of Gatorade...
Lebron James Endorsment Lebron James endorsement with Gatorade markets the company to many athletes and non athletes. Gives...
Variety Of Flavors Gatorade comes in many different flavors. The more variety, the more customers can buy from. Gives...
Market Leader - Gatorade Gatorade has a strong market share and this gives them competitive advantages.
Strong Brand Name For Gatorade Gatorade has a strong brand name worldwide.
Filtered Water Reduces Costs - Pepsi The use of filtered water, by Pepsi, reduces their cost. Competitors use spring water, which is more...
Innovative Culture A company with an innovative culture continuously produces new and inventive products. An innovative...
Successful Acquisition Business Model Acquisition business model could improve margins with economies of scale. As companies acquire more...

Weaknesses

Limited Product Line Gatorade does not have much of a product like outside of sport drinks.
Geographically Concentrated in US Market When a companies relies on a large percentage of their sales from a single geography, they could...
Customer Concentration When one company becomes the main buyer of goods, then they have a lot of pricing power. Diversified...

Opportunities

International Expansion Strong international presence and expansion should increase growth and profits. Expansion over...
Emerging Markets - Gatorade The emerging markets gives the company an opportunity to gain market share in the growing region of...
NBA Hoop It Up NBA Hoop it up is nationally sponsored by Gatorade. The event attracts people to come out to the...
Sport Seasons Sport seasons call for drinks like Gatorade to be promoted for their abilities to give electrolytes...
Alcoholic Beverages It has been mixed with alcoholic beverages in club venues as drink specials. Club owners add...
Product Innovation Consumers demands change over time. These changes can be gradual, but many times, they occur...
Emerging Markets Demand from emerging markets is helping growth and margins. Emerging markets create new...
Bottled Water Demand The demand for bottled water is increasing as a result of many factors. One, bottled water is a...
Healthy Food Objective According to the Economist, by 2015 the firm [Pepsi] aims to reduce the salt in some of its biggest...
Plastic Bottle Backlash The environment backlash from the use of plastic bottles to hold water may aid any company that...
Non-carb Beverage Business Traditional carbonated drink companies are expanding into non-carb beverages in order to diversify...

Threats

Bottled Water Backlash Backlash in bottled water use may decrease growth and potential earnings. Plastic bottles are...
Corn Prices Increase Corn is a major ingredient for the product. If corn prices rises, this raises cost for the company...
Unhealthy Lifestyle - Frito-Lay Too much consumption of chips causes many health issues. As consumers become more aware of wanting...
Competition for Frito Lay The company has many competitors it must deal with. Competition always takes away market share from...
Over Consumption Obesity is a disease that we are as a global community must deal with. Over consumption of certain...
Competition For Gatorade Gatorade has competitors that they must face. This takes away market share from the company.
Increasing Health Consciousness As consumers become more aware of their health, the consumption of junk food may decrease. This...
Marketing Unhealthy Food to Kids The Federal Trade Commission wants to curb the marketing of unhealthy food to children. This would...
Energy Costs High fuel prices, packaging and other issues directly related to the cost of energy are hurting...
Commodity Prices Commodity prices around the world are increasing, which increases the cost of inputs for the...
Saturated Carbonated Drink Market Slow growth in saturated carbonated drinks markets. Relies on international markets for further...

PepsiCo (PEP) SWOT Analysis Profile

PepsiCo, Inc. is a conglomerate made up on three subsidiaries: Frito-Lay N.A., PepsiCo Beverage N.A., and Quaker Foods N.A.. Frito-Lay manufactures a full compliment of snack foods under a long list of brand names: Everything form Doritos to Grandmas cookies and Stacys pita chips. PepsiCo manufactures (and outsources), bottles and distributes a wide range of carbonated beverages, waters, juices (Propel, Dole, SoBe, and Tropicana brands); and ready to drink coffee and tea via joint ventures with Unilever and Starbucks. Quaker Foods produces cereal, rice, pasta, and other grain products under the brand names of Quaker, Rice and Pasta-A-Roni, Aunt Jemima, and Near East. (read full profile)

Additional Information

What is a SWOT Analysis? It is a way of evaluating the strengths, weaknesses, opportunities, and threats that affect something. See WikiWealth's SWOT tutorial for help. Remember, vote up the most important comments. Check out WikiWealth's entire database of free SWOT reports or use our SWOT analysis generator to create your own SWOT template.

SWOT Conclusion

Strengths + Opportunities = 28

Threats + Weaknesses = 16

… A history of overcoming weaknesses makes it difficult for other firms to exploit their difficulties. A good defense against threats lowers the risks that profits will decrease.

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