SWOT Analysis of PepsiCo

1. In 1993, PepsiCo had vast lines of discontinued products throughout the history which badly damage the company’s reputation..
2. PepsiCo directed to stave off a runaway fraud pertaining to supposed product tampering such as:
   a.    Needles were declared to have been found in bottles and cans of Diet Pepsi.
   b.    Consumers accounted finding pins, screws and a bullet in their Diet Pepsi.
3. Overdependence on the markets of United States and Wal-Mart. For example the company generates 52 percent of its sales from the U.S. and nearly 12 percent is generated by Wal-Mart.
4. PepsiCo is too away Coca-cola in the international market place and demand for its products is extremely elastic.

Opportunities

1. India is a promising market and one of the top five market places in provisions of growth of soft drinks market.
2. The level of consumption in India is seen to increase with increasing household incomes.
3. Expand divisions with mergers and acquisitions for strong presence all over the world.
4. Invest in R&D to expand offerings of more reasonable, nutritionally related products for lower-income and underserved communities.
5. The improving economic conditions globally after economic slowdown 2007-10.
6. Growing demand of juices products and health-conscious consumers and changing lifestyles.
7. Bottled water drinking is increased by 11 percent.
8. PepsiCo should offer the hygienic products due to increasing figure of health conscious consumers.

Threats

1. PepsiCo and Coke have been main targets in India because they are familiar foreign firms. This draws abundance of attention and strong criticism by different groups.
2. Improve or sustain brand equity figure for PepsiCo’s $19 billion brands in top 10 marketplaces.
3. In this Industry Pepsi is fighting against increasing taxes on soft drinks.
4. Carbonated drink consumption have been decreasing due to involvement of lofty fructose and sugar to obesity result to heart disease.
5. Many smaller players are furious competitors which are also creating the competition harsh.
6. Economic slow down resulted in volatile commodity costs, fluctuating currencies, frozen credit markets and negative GDP rates.
7. PepsiCo is facing strong regulations in different countries around the world.
8. Coca-Cola is the strong competitor which competes with strong advertising and differentiation.
9. Numerous substitutes such as water, juices, coffee and beer etc are available to the end consumers.