SWOT Analysis of PepsiCo

PepsiCo is an American multinational corporation. The company is headquartered in Purchase, York. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Popular brands of PepsiCo are: Mountain Dew, Diet Pepsi, Lay’s, Doritos, Tropicana, Gatorade, and Quaker. Pepsi’s products are available in some 200 countries. In 2010 the company acquired its two largest bottlers, Pepsi Bottling Group and PepsiAmericas. SWOT analysis of the company is given below:

Strengths

1. Pepsi is highly diversified company by having non-carbonated and carbonated beverages in addition to sweet, salty and cereal-based snacks.
2. Pepsi Corporation has strong image all over the globe and possesses 5 diverse billion-dollar brands.
3. PepsiCo has shaped partnerships with numerous brands in order to market and distribute them with its own brands.
4. PepsiCo brands stand for quality and are appreciated household names.
5. Pepsi has more diversified portfolio in food and beverage related products as compared to the Coca Cola.
6. PepsiCo mainly fights on differentiation, advertising and high market share.
7. PepsiCo has strong brand equity and greater number of loyal customer’s around the world.
8. It has huge production and distribution facilities of alcoholic, non-alcoholic beverages and food products.
9. PepsiCo has delivered solid operating and financial performance in current (2007-2009) challenging global environment and generated significant operating cash flow such as:

   a.    Net sales grew 5% on a stable currency basis.
   b.    Main division operating profit rose 6% on a stable currency basis.
   c.    Operating cash flow, without few items, arrive at $5.6 billion, an increase of 16%.

Weaknesses