Pepsi Swot

An internal analysis of Pepsi reveals some core strengths and weaknesses. Their strengths let in a broad product line and great reputation, material body unrivalled maker of snacks, and they sell terzetto products through the same dispersal channel. Pepsi, Gatorade, and Tropicana share production capabilities which aids in the reduction of costs, improves capacity, and smoothes protrude the impact of seasonal fluctuations in demand for a situation product. On the other hand, Pepsi has some weaknesses that include Pepsi products that do not bear the company name, a lack of brand sentiency with some of their products, and a majority of their gross sales comes from the U.S. market and some 1/3 of their sales is from Frito-Lay. In Pepsis impertinent environment they encounter a few opportunities as comfortably as some threats. Opportunities that they can take advantage of include the increasing trend towards healthier food, noncarbonated drinks which are the instantaneous growing part of the industry, and international markets that they have not still tapped into. However, Pepsi faces threats from several competitors such as Coca Cola and kraft Foods due to Pepsis broad product line. In addition, since sales from Frito-Lay makes up a large portion of their profits, a downturn in the market will pose another threat to them.

Pepsi uses a diversification strategy that is keyed towards product innovation, pie-eyed relationships with distribution allies, international expansion, and strategic acquisitions. Most of PepsiCo brands have achieved number one or number two positions in their individual food or beverage categories through these strategies. Furthermore, their management has a proven ability to capture strategic fits between the trading operations of new acquisitions and its other businesses. They have also formulated three divisions that are comprised of PepsiCo Americas Foods division, PepsiCo Americas Beverages division, and PepsiCo International in order to increase efficiency in each area. In... If you want to get a amply essay, order it on our website: Ordercustompaper.com

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