The company grows despite an increasing level of market saturation. This SWOT analysis shows that PepsiCo is positioned to grow and reach the top position in the global food and beverage industry. The SWOT analysis framework identifies the strengths and opportunities that the firm can tap to address its weaknesses and business threats. As a global company, PepsiCo must address the issues shown in this SWOT analysis to minimize barriers to its global performance.
PepsiCo Internal Analysis Introduction Internal analysis is the process of evaluating an organizations strength and weaknesses. It is important to conduct an internal analysis to find the strengths and weaknesses of the company. This paper presents an internal analysis of the PepsiCo Company.
Strengths One of the greatest strengths for PepsiCo is its brand. PepsiCo is one of the companies with the largest brand recognition in the world PepsiCo, The brand name Pepsi is known in virtually every country in the world. The strong brand presence makes it easier for the company to market its products around the world.
Under the Pepsi company brand, PepsiCo has numerous other product brands. All these brands have rode on the success of the company brand and have found it easy to sell since the company brand in largely accepted in the market.
The popularity of PepsiCo corporate brand has also made it easier for the company to introduce new products in the market. Another key strong point for PepsiCo is a large distribution network. PepsiCo has managed to do this through establishment of a massive distribution network.
PepsiCo runs bottling units in diverse geographical region which enables the company to produce its products near the consumers. This reduces the cost of transportation and storage. In addition, PepsiCo has established relationship with small and mega retailers who sell PepsiCo products to the final consumers.
Forming partnership with large retailers such as Wal- Mart has enabled the company to expand its reach to the market. Similarly, partnership with small retail business has enabled the company to take it products to even the remotest parts of the world. Apart from retail chains, PepsiCo has also teamed up with fast food restaurants around the world which have also provided the company with a wide network of outlets PepsiCo, Competitive Advantage The beverage industry is one of the most competitive industries in the world because it is filled by numerous products competing against each other.
In order to remain in business, any company needs features that gives it an edge over it competitors Olsen, PepsiCo has been on fore front in the development of innovative beverage products for different segments of the market.
Core has over 20 lines of products with each targeted to different groups of people. Another competitive advantage of PepsiCo is the ability to respond quickly to market opportunity and threats.
PepsiCo innovativeness gives it the ability to respond quickly to changes in the market. The company convenient size also gives it the ability to move quickly. The company is neither to small like most of its competitors neither is to large like its main competitor, Coca Cola.
The relatively large size of the organization gives the organization access to resources that also make it easier for the company to move quickly.
This strategy has seen the company create very powerful bottlers that it cannot exert control over. Sometimes, the franchises oppose introduction of new products by PepsiCo while other refuse to manufacture some of the products.
The franchise system has also limited the ability of the company to expand its operations PepsiCo, Unlike Coca Cola, which is able to invest in its bottling companies, PepsiCo cannot invest in its bottling companies since it does not own them.
This has hindered the growth and expansion of the company since most of the individual investors have limited capacity to make such investments. Lesson Learnt from the Module Every organization has its strong and weak point and the only way to succeed is by understanding these points Schermerhorn, This knowledge enables an organization to build on its strengths and improve on its weaknesses thereby becoming more competitive in the market.
Internal analysis is the process used by organization to evaluate its strength and weaknesses. Competitive advantage refers to aspects that are unique to an organization and which give the organization an edge over the others Olsen, This implies that, in order for competitive advantage to work for a company, it must be very difficult for the company to imitate.
Building a Lasting Organization.PepsiCo Internal Analysis Introduction Internal analysis is the process of evaluating an organizations strength and weaknesses.
It is important to conduct an internal analysis to find the strengths and weaknesses of the company. Strengths in the SWOT Analysis of PepsiCo: Brand equity: it is one of the most prominent and famous brands in the world in the food and beverage sector.
It is also known as the brand of youth. It has a high brand recognition and reputation. It has a brand valuation of $ billion and it is ranked 29 in the Forbes most valuable brands list.; Product . SWOT Analysis of PepsiCo STRENGTHS One of PepsiCo's major strengths is their high market position.
Other strengths are their brand, they are an international company, they have a variety of products, distribution, and successful advertising. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. If you want to find out more about the SWOT of PepsiCo, you’re in the right place.
For more information on how to do a . A Quick SWOT Analysis Justin Hellman | August 15, PepsiCo (PEP) shares, among the bluest of the blue chips, have continued their winning streak thus far in , outpacing the broad-based S&P Index by about two percentage points year to date.
Let's take a look at the strengths, weaknesses, opportunities, and threats facing beverage and snack giant PepsiCo The Motley Fool recommends PepsiCo. The Motley Fool owns shares of PepsiCo.