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PepsiCo SWOT

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PepsiCo SWOT
Complete Assurance of Learning Exercise 1B, Step 4, on textbook page 36.

Ten major strengths:
1. Pepsi offers over 22 different brands worldwide. (Global Brands, n.d)
2. In the past year they went above and beyond with their financial goals.
3. Pepsi is successful with advertising and marketing.
4. The company has a strong free cash flow at $8.2 billion. (Annual Report, p. 1)
5. With good cash flow Pepsi have a greater capacity to expand into other markets.
6. In the past ten years Pepsis net revenue compounded annually growth rate was 9%. (Annual Report, p. 4)
7. They support efforts to keep clean fresh water in many nations around the world.
8. They do well at adapting to the changing market.
9. They seek to create a healthier intake of food and beverage choices.
10. Pepsi partners with many other well-known food options. (ie. Doritos, 7up, Tropicana)

Ten major weaknesses:
1. Coca-Cola is overall a more well-known company worldwide.
2. Pepsi seems to depend a large majority of sales on large retail stores.
3. There prices tend to be lower bringing in less revenue annually.
4. Brand awareness is not as well known in the western United States.
5. Some products that they are a part of are seasonal products.
6. Pepsi depends a large percentage on store like Walmart and Sam’s club at 11%. (Form 10-K, p. 6)
7. The company does not market the differences between Coca-Cola and Pepsi.
8. Pepsi does not highlight its higher quality products.
9. Pepsi risks the competitiveness of its company and its products if there were to be changes in legal realm.
10. With the desire for the company to grow Pepsi could expand its products into economies in other countries that are not stable therefore causing Pepsi to suffer financially.

Ten major opportunities:
1. Pepsi has great opportunities to grow with their brand awareness.
2. Pepsi can expand their market into different countries.
3. The company can focus on the markets that they are already in to grow its



References: Pepsico. (2015). Global Brands. Retrieved from: http://www.pepsico.com/Company/Global-Brands Pepsico Pepsico. (2014). Form 10-K. Retrieved from: http://www.pepsico.com/annual13/media/PepsiCo_10K_20140214.pdf Complete Assurance of Learning Exercise 10D on textbook page 321.

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