Topic > SWOT Analysis of PepsiCo - 898

IntroductionAccording to the Oxford dictionary a SWOT analysis is "a study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats". PepsiCo is a leading multinational food and beverage company that owns several hundred brands such as Pepsi, Tropicana, and Quakeroats. This is a report based on SWOT analysis of PepsiCo. Strengths PepsiCo is a large global company that has many strengths and advantages. One of its main strengths is that its product range is diverse; this means it is not based on a few key products or seasonal sales and is not significantly affected by changes in customer tastes. PepsiCo also has a large distribution channel serving more than 10 million stores per week in more than 200 countries. (Strategicmanagementinsight.com.) One reason PepsiCo's growth has been so successful is its approach to mergers and acquisitions of beverage, bottling and snack companies. These mergers resulted in the company not having to rely on sales of a particular brand or product and resulted in the company having 22 brands contributing to its revenue. PepsiCo spent over $2 billion on advertising in 2012, which has led to an increase in its market share and competitiveness. (http://www.pepsico.com) The company also recognizes its role in society and is very involved in charitable activities that have to do with education, recycling, reducing water use , the fight against obesity and other projects. This is done through its own foundation, which increases brand name awareness and customer loyalty. Weaknesses Even successful companies like PepsiCo have their weaknesses. Over 13% of PepsiCo's corporate revenues come from Wal...... middle of paper ......com. 2013. [Online] Available at: http://www.cbsnews.com/8301-505123_162-44040677/good-news-pepsicos-indra-nooyi-solves-the-obesity-crisis/?tag=bnetdomain [Accessed : December 5, 2013].Mindtools.com. 2013. SWOT Analysis - Strategic Tools from MindTools.com. [online] Available at: http://www.mindtools.com/pages/article/newTMC_05.htm [Accessed: 5 December 2013].Pepsico.com. 2013. Brands You Love | PepsiCo.com. [online] Available at: http://www.pepsico.com/Brands.html [Accessed: 5 December 2013].Sec.gov. 2013. Form 10-K. [online] Available at: http://www.sec.gov/Archives/edgar/data/77476/000119312512081822/d269581d10k.htm [Accessed: 5 December 2013].Strategicmanagementinsight.com. 2013. SWOT Analysis: How to Do It Right! | Insight into strategic management. [online] Available at: http://www.strategicmanagementinsight.com/tools/swot-analysis-how-to-do-it.html [Accessed: 5 December 2013].