Lays SWOT Analysis 2022 – PepsiCo

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SWOT Analysis of Lays analyses, Lays is a well-known label made of potatoes. It are owned and operated by Frito Lays which is a 100% own subsidiary company of PepsiCo. The potato chips are sold in various varieties that are some of them global such as American Cheese and some others that are indigenous such as India’s magic masala. The chips that have numerous popular variations including Classic Salted Spanish Tomato Tango, Lays Cheddar and Sour Cream, Lays Flamin Hot and many more. Lays SWOT Analysis can teach us a lot about Lays Business Model and other factors.

Did you know? There are more than 200 different varieties of Lay’s available in the world with most of them being region and country specific.

An leading market player in the majority of markets, it is part of Frito Lays control 56 % of the market share in the American market which is among the largest. Lays is among the leading potato chips that does not earn sales of around 1.2 billion dollars. Lays was launched first in 1932. since then, it has always beat its competitors and maintain its position on the market.

This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct an SWOT analysis by Lays.

Lays At A Glance – Lays SWOT Analysis

Company: PepsiCo
Founders: Herman Lay
Year of establishment: 1940
CEO: Steven Williams
Headquarters: Plano, Texas, United States
Employees (Dec 2020): 55,000
Ticker Symbol: PEP
Type: Public
Annual Revenue (Dec 2020): $3.62 Billion
Profit net income (Dec 2020): $1 billion

Lays Products & Services: Lay’s and Ruffles potato chips | Doritos tortilla chips | Tostitos tortilla chips and dips | Cheetos cheese flavored snacks | Fritos corn chips | Rold Gold pretzels | Sun Chips | Cracker Jack popcorn

Company Website: www.lays.com

Lays Competitors 

Competitors: Kurkure | Bingo | Haldirams | Parle Wafers | Diamond Wafers | Piknik | Local No frills wafers

Lays SWOT Analysis – SWOT Analysis Of Lays

SWOT Analysis Of Lays analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Lays SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Lays SWOT Analysis. Below Is The Detailed SWOT Analysis Of Lays.

Lays Strengths – Lays SWOT Analysis

1. Local yet global: Lays has been a well-known flavor for potato chips all over the world since they come in flavor options that are widely accepted such as Classic Salted or American Cheese but they also come with local flavors such as Spanish Tomato Tango or India’s magical masala. These flavors provide an Indian flavor for the company.

2. Frito Lays: “Frito Lays is an time-tested snacking company as well as a constant leading player in this industry. It has an market share of greater than 35 per cent of market for snack-chips with 60 per cent within the United States. Frito Lays also has five of the top chips in the world. brands: Lay’s, Ruffles Doritos, Tostitos as well as Cheetos each of which provides Frito Lays annual sales of 1 billion dollars per year. The company is represented in every popular category of chips including tortilla chip, potato chip and corn chip industries. This knowledge Lays the necessary backing in the chip category.

3. Broad distribution channel: PepsiCo which is the current owner of Lays is a large circulation channel. This makes sure that Lays can be found in remote areas, that in turn has made it more popular.

4. The target segment: “Lays targets the appropriate segment for its primary audience that is young adults. Through engaging advertisements and the right spokespersons who symbolize the young, vibrant and energy, the brand has captured thousands of children all over the world.

5. Local Sourcing One: Of the most important methods used by Frito-Lay’s to gain the trust of their customers was to offer local source and connect them to the vendor via one of their initiatives ” Lays Local Campaign” that was launched in 2009. With this program, customers could be introduced to five farms that were cultivating potatoes for Frito-Lay’s. This was done to ensure that the buyer did not have any doubts regarding the origin of the potatoes.

Lays Weaknesses – Lays SWOT Analysis

1. A decrease in snack consumption: There has been a drop in the consumption of snacks globally due to increasing health concerns. This decrease has impacted sales of Lays in a negative way.

2. Low margins: There is very high competition in the market for snacks and there is little room to differentiation aside from the flavoring. The potential for pricing differentiation is smaller as the consumer is sensitive to price. This means that brands have to maintain costs as minimal as they can which means that margins are quite low.

3. The low capacity for innovations: In a snack like Frito Lays , there is a very limited opportunity for the development of new ideas. This means that Frito Lays, the brand Lays that has been operating for quite a while has lost its market share in favor of smaller competitors and the lack of brand trust from consumers has them switching brands more frequently.

4. Market Research: Lay s Potato Chips has not conducted market research within the market that is serves since the past 2 years. As a result, it is making decisions based on 2 years old data, while customer needs may have evolved over time.

5. High employee turnover rates: Lay s Potato Chips has a higher employee turnover rate compared to competitors. This means that it has more people leaving the job, and as a result, it is spending more on training and development as employees keep leaving and joining.

6. Quality Control: Lay s Potato Chips has a lower budget for its quality control department than competitors. This leads to lack of consistency and the possibility of damage to quality across its various outlets.

Lays Opportunities – Lays SWOT Analysis

1. Healthy snacks: There was a shifting in the preference of consumers from snacks to healthier snacks. This has led to the creating a new industry for bakery snacks, as well as healthy snacks. These are the areas which Lays could explore for potential new businesses.

2. Exposure in comparison to the past: The public are more conscious of global brands and flavors, which means that there is more scope to globalize the products of Frito Lays.

3. Skilled workers: increase in education and training by numerous institutes has increased the amount of skilled labor available within the country. This means that if Lay s Potato Chips is able to hire skilled labor, it would have to spend less on training and development, therefore, saving costs.

4. Globalization: Increased globalization does not restrict Lay s Potato Chips to its own country. It can extend its operations to other countries, entering into these markets and making use of the opportunities that lie in these markets.

5. Skilled workers: increase in education and training by numerous institutes has increased the amount of skilled labor available within the country. This means that if Lay s Potato Chips is able to hire skilled labor, it would have to spend less on training and development, therefore, saving costs.

6. Interest rate: Lower interest rates than compared to previous years provides an opportunity for Lay s Potato Chips to undergo expansion projects that are financed with loans at a cheaper interest rate.

Lays Threats – Lays SWOT Analysis

1. Competitors: Some of the major competitors to Lays include Ruffles, Doritos, Tostitos and Cheetos. There is also a growing competition from other local brands.

2. Suppliers: The bargaining power of suppliers has increased over the years with the decrease in the number of suppliers. This means that the costs of inputs could increase for Lay s Potato Chips.

3. New entrants: there have been numerous players that have entered the market and are gaining market share by gaining existing companies’ market share. This is a threat to Lay s Potato Chips as it can lose its customers to these new entrants.

4. Exchange Rate: the exchange rate keeps fluctuating and this affects a company like Lay s Potato Chips that has sales internationally, while its suppliers are local.

5. New entrants: there have been numerous players that have entered the market and are gaining market share by gaining existing companies’ market share. This is a threat to Lay s Potato Chips as it can lose its customers to these new entrants.

6. Increasing competition: there has been an increase in competition within the industry putting downward pressure on prices. This could lead to reduced revenue for Lay s Potato Chips if it adjusts to the price changes, or loss of market share if it doesn’t.

This is our SWOT report that Lays has done. Please let us know if you have additional suggestions to add.

Lays SWOT Analysis Template

Lays SWOT Analysis Template


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