Firmly established a Alloted excessive amount Respond to the increasing Intense competition

THREATS
STRENGTHS

WEAKNESSES

OPPORTUNITIES
strong brand name and of expenditure on demand in juice and other against global brands or
reputation. advertising. beverages by conducting markets.
Uses all available media to Market share is 36.7% sampling in big events to Constantly changing
gain global presence. which is less than U.S cola capture new customers. consumers preference
Extensive supply and that holds the largest Diversify business by and behavior.
distribution channel. share market of 41%. introducing new pepsi Probable scarcity of
Innovative products to Health issues regarding non-carbonated drinks for resources when global
meet constantly changing convienance foods and different age groups. popuplation grows.
consumers demand beverages which are Introduce brand in other Increasing health
across the world. viewed as unhealthy. developing markets conciousness.
Considered as the World's Overdependence on Wal- considering that in some Governent and non-
2nd Best-Selling Soft Mart which represents other countries, PepsiCo is governemnt health
Drinks Brand. 12% of total net revenue not yet well known. organization's criticism on
Offers wide variety of which means PepsiCo can Continue to offer variety high amount of sugar and
products such as oatmeal, be influenced by its of products but focusing salt in products.
chips, soda, water, juice largest customer's more on healthier Decreasing gross profit
and tea. business strategy. breverages with growing margin which might
Successful marketing and Too low net profit margin. demand. indicate future problems.
advertising campaigns. Weaker brand awareness Young generation Growing number of
compared to Coca-cola. increasing demand on similar products being
breverages. offered in the market.

PepsiCo SWOT MATRIX

PepsiCo’s SWOT Matrix shows that it is probable to expand their market and reduce their expenditure
by brand diversification with consideration to consumers’ health concern and changing demands on
foods and beverages.

Key Internal Factors

Internal Strengths
The unification of bottling plants – in late 2009, PepsiCo’s acquired and combined its two largest
independent bottlers for $7.8 billion (PepsiAmericas and the Pepsi Bottling Group).
Diversified Product Line – operating in the non-alcoholic beverage industry, the salty or savory snack
food industry, and the breakfast food industry.
Expanding into other countries – globally, Pepsi continue to expand its market in Canada, Latin
America, Europe, Middle East, Asia, Northern Asia, Australia and the Asian Pacific.
The company’s lead by experienced management team – PepsiCo is organized using three strategic
business units of PepsiCo Americas Foods, PepsiCo Americas Beverages, and PepsiCo International
which shows divisions along both product categories and geographical locations.
Brand Recognition – PepsiCo is the World’s 2nd Best Selling Soft Drinks Brand which helped the
company establish a strong reputation.
Key External Factors

Internal Weaknesses
Adjust cost downward in economic troubles – first quarter of 2009, PepsiCo’s net revenues of $8,263
million were down $70 million from the same quarter in 2008. However, PepsiCo controlled costs by
decreasing cost of goods sold by $90 million which resulted in a net profit of $1,141 million but is $90
million less than last year’s first quarter. The decline continued the downward trend up to second
semester as consumers shift to less costly drinks and snacks.
Long-term debt – the company should expand global sale to offset or reduce long-term debt.
Dearth in Research and Development- expansion in R&D will definitely help develop new lost cost
foods and beverages, i.e., creating carbonated health waters and increasing healthy food divisions.
Dearth in marketing to web related media outlets – using alternate media outlets to increase
marketing of colas.