Posted on January 5, 2014 by John Dudovskiy
SWOT analysis is one of the most popular strategic analytical methods that helps to generate categorise information about strengths, weaknesses, opportunities, and threats for businesses to be used in strategic decision-making. PepsiCo SWOT analysis is presented on the table below:
Strengths
Strong leadership from CEO Indra Nooyi
Large, yet focused brand portfolio
High level of customer loyalty for most of the brands within product portfolio
Extensive experiences in mergers and acquisitions
Integrated supply-chain and distribution practices across PepsiCo brands
Weaknesses
High level of dependence on large supermarkets such as Wal-Mart
Overdependence on domestic market in the USA
“Aquanfina” tap water scandal
Tropicana Kids orange juice product recall. Opportunities
Increasing presence in emerging markets such as China and India
Engagement in product differentiation strategy
Rising revenues through increasing the share of healthy food and beverages in product portfolio
Threats
New competitors from emerging economies from the East
High amounts of sugar or salt in products being criticised by government and non-government health organisations
Rapid decline in the sales of carbonated drinks
New product recalls due to quality scandals
PepsiCO SWOT Analysis
Strengths
Effective leadership of PepsiCo CEO Indra Nooyi has been the main focus of many business case studies and the company can further benefit from inspirational leadership style of its CEO. Moreover, although PepsiCo brand portfolio is large, it is highly focused and the majority of its brands enjoy high levels of customer loyalty. Integrated supply-chain and distribution practices across PepsiCo brands and extensive experiences in mergers and acquisitions are additional advantages of the company. Weaknesses
Pepsi brand is highly dependent on domestic market in the USA in general, and on large supermarkets such as Wal-Mart in particular.