PepsiCo SWOT Analysis Analyzes, PepsiCo, Inc., American food and beverage company that is one of the largest in the world, with products available in more than 200 countries. It took its name in 1965 when the Pepsi-Cola Company merged with Frito-Lay, Inc. The company’s headquarters are in Purchase, New York.
Did You Know?
PepsiCo, based in Purchase, N.Y., owns the Pizza Hut, Taco Bell and KFC chains, which together have 29,000 units around the world. That’s more than McDonald’s, which has 21,000.
Pepsi is a carbonated soft drink manufactured by PepsiCo. Originally created and developed in 1893 by Caleb Bradham and introduced as Brad’s Drink, it was renamed as Pepsi-Cola in 1898, and then shortened to Pepsi in 1961.
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 a SWOT analysis by PepsiCo.
PepsiCo At A Glance – PepsiCo SWOT Analysis
Company: PepsiCo, Inc.
Founders: Caleb Bradham
Year of establishment: March 1999
CEO: Ramon Laguarta
Headquarters: Purchase, Harrison, New York, United States
Employees (Dec 2020): 291,000
Ticker Symbol: PEP
Type: Public
Annual Revenue (Dec 2020): US$70.37 Billion
Profit net income (Dec 2020): US$12 Billion
Products & Services: Beverages | Menu | Products | Beverages | Coffees/Teas | Craft Beverages | Energy Drinks | Frozen Beverages | Juices & Shakes | Lemonades | Soft Drinks | Sparkling Beverages | Sports Drinks | Waters/Enchanced
Company Website: www.pepsico.com
Top PepsiCo Competitors
Competitors: Coca-Cola | Dr. Pepper Snapple | Red Bull | Dabur Real juice | Mondelez | General Mills | Kellogg’s | P&G | Conagra Brands | Danone | Campbell Soup | Monster Beverage | Nestle | Britvic | Unilever | Kraft Foods | DPSG
PepsiCo SWOT Analysis – SWOT Analysis Of PepsiCo
SWOT Analysis Of PepsiCo analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With PepsiCo 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 PepsiCo SWOT Analysis. Below Is The Detailed SWOT Analysis Of PepsiCo.
PepsiCo Strengths – PepsiCo SWOT Analysis
1. A massive portfolio: PepsiCo is a reliable portfolio that includes more than 100 brands. It dominates the food, snack, and beverage sectors. When it comes to earnings, PepsiCo is only second to Nestle. It’s been able to achieve this growth rate due to the variety of brands they have. The year 2017 saw the most revenue, with 22 of 100 brands made the sum of $1 million USD. Others contribute to PepsiCo at minimum $500 million dollars in sales. This is the way a brand is able to dominate an industry while giving their customers options.
2. Recognition of brands: Since PepsiCo is the owner of several of the most well-known drinks, food snacks, and food brands, they’ve been transformed into a global brand. Each brand has a value of millions to billions. They also fall under PepsiCo and push the net worth of the company into the billions.
3. Advocacy and Sponsorships: PepsiCo also makes use of endorsements from its brands to promote its products. It is also connected to music festivals as well as sporting occasions. The biggest sports organizations are supported by Pepsi products. This allows PepsiCo to appeal to younger customers who are PepsiCo’s primary market.
PepsiCo Weaknesses – PepsiCo SWOT Analysis
1. Coca-Cola rivalry: PepsiCo has always been in competition against Coca-Cola items. In many instances it’s their only rivals. This leaves no space for other businesses to join in. Because the majority of companies do not have the money, resources, or reach as these two do.
2. The Health Crowd: Yet, PepsiCo faces problems in the health industry. A lot of the items offered contain calories and sugar. They are also linked to rising obesity rates and health issues related to it such as Type 2 Diabetes. While PepsiCo has developed healthier options, like the diet Pepsi as well as Pepsi zero but the company is still able to market its unhealthy food products frequently to the general public.
3. In one single industry: PepsiCo has over 100 brands of merchandise. They’re not in the food sector. It’s beneficial to have numerous options in one sector. However, it’s still placing all their eggs into one basket. If their competitors such as Coca-Cola decide to enter other sectors, PepsiCo will find themselves trying to catch up.
4. A failed product: It’s also impossible to reach the scale and profits of PepsiCo without failing a few products in the process. If the products that fail harm the image of the brand and reputation, then there’s a problem. This was exactly what occurred when it came to the Crystal Pepsi product.
5. poor sponsorship concepts: PepsiCo also gives out sponsorships. If they’re chosen by the wrong person and the consequences could land to the company being in hot water. People are very vocal in social networks particularly when they don’t support a particular famous person. In the event that PepsiCo products are in the middle of the news of a celebrity scandal, this can negatively affect the image of their brand.
PepsiCo Opportunities – PepsiCo SWOT Analysis
1. Health product diversity: PepsiCo does not offer the most healthy and nutritious products. However, that doesn’t mean they won’t however. The company is able to come up with alternatives to keep the health-conscious consumers satisfied. It’s also a way for the company to diversify its product offerings within the food and drink business. For instance, they’ve flavor-infused 7UP with Stevia as a sugar substitute. The company needs to look into ways to use healthier alternatives in their drinks, food and snacks. Also, they should develop new, healthy products like diet Pepsi.
2. Moving into other fields: But, they must also strive to break away from this particular industry and move into other industries. Diversity is what makes brands successful. This presents a chance for PepsiCo to establish itself in areas that their rival isn’t yet. PepsiCo has the resources, clients, and expertise to succeed.
3. The absence of flavors in drinks: Strangely enough, PepsiCo does not focus so much on the flavor in their beverages. As for Pepsi it’s just normal. Its original flavor is legendary. They have also created variations of the flavor, including Pepsi Wild Cherry, and Pepsi Blue. But these are small tweaks to the original flavor -but not a complete overhaul. It could be beneficial in the long run for the business to add flavors such as Mango or Strawberry.
PepsiCo Threats – PepsiCo SWOT Analysis
1. Nestle in the role of a rival: Of course, the main competitions for PepsiCo are their greatest weaknesses. That comprises Nestle as well as Coca-Cola. They have the purchasing capacity and brand recognition to take on PepsiCo. Nestle has been identified as the leading competitor given that that they beat the PepsiCo’s profits in the year 2017. However, it’s not just the directly-related companies PepsiCo must be on the lookout for.
2. Too few health options: PepsiCo is having a difficult time standing up to an industry that promotes health. In the past, a large portion of the PepsiCo brands are unhealthy. It could be that they’re loaded with sugar, calories or both. Today, people are more likely to opt for sweets, but they’re less in calories than a soda. In actual fact, PepsiCo has witnessed a decline in sales of soft drinks in recent times. The trend is likely to increase as the years progress.
3. A negative economy: The state of the economy and the risk of recessions will always pose an issue for PepsiCo. When the economy slows it is more likely for people to save money to purchase essential items. For PepsiCo the majority (if but not every) items fall under the “not needed” category. Since PepsiCo hasn’t made the leap into the food and beverage industries it’s not much they can help in this regard.
PepsiCo SWOT Analysis Overview Template
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