Question

Swat analysis of pepsi?

Answer 1

SWOT analysis is one of the most popular strategic analytical tools that used for strategic decision making. The acronym stands for strengths, weaknesses, opportunities, and threats associated with a particular business. PepsiCo SWOT analysis is presented on table below:

Strengths1.      Large, yet focused brand portfolio in food, snack and beverage industry.2.      Strong leadership from CEO Indra Nooyi3.      High level of customer loyalty for most of the brands within product portfolio4.      Extensive experiences in mergers and acquisitions5.       Integrated supply-chain and distribution practices across PepsiCo brandsWeaknesses1.      Overdependence on domestic market in the USA2.      High level of dependence on large supermarkets such as Wal-Mart3.      “Aquafina” tap water scandal and product recall cases4.      PepsiCo brand perceived as ‘unhealthy’5.       No presence outside of food, snack and beverage industryOpportunities1.      Improving health implications of products2.      Business diversification into other industries3.      Increasing presence in emerging economies4.      Increasing the effectiveness of CSR strategy5.      Focusing on research and developmentThreats1.      Intensification of competition2.      Rapid decline in the sales of carbonated drinks3.      New product recalls due to quality scandals4.               High amounts of sugar or salt in products being criticized by government and non-government health organizations