SWOT AnalysisPepsi

Presented by:

• Mehwish• Sidra Bashir• Umer Rabbani• Samiullah

SWOT ANALYSIS

SWOT helps a company to se itself for better and for

worse. Companies are inherently insular and inward looking

SWOT’s are a means by which a company can better understand

what it does very well and where its shortcomings are. SWOT’s

will help the company size up the competitive landscape and

get some insight into the vagaries of the marketplace.

SWOT analysis has been a framework of choice among

many managers for along time because of its simplicity and its

portrayal of the essence of sound strategy formulation -

matching a firm’s opportunities and threats wit its strengths

and weaknesses. Central to making SWOT analysis effective is

accurate internal analysis – the identification of specific

strengths and weaknesses around which sound strategy can be

built.

INTRODUCTION

Pepsi is a carbonated soft drink produced

and manufactured by PepsiCo. The drink was

first made in the 1890s by pharmacist Caleb

Bradham in New Bern, North Carolina. The brand

was trademarked on June 16, 1903. There have

been many Pepsi variants produced over the

years since 1898.

In 1903, Bradham moved the

bottling of Pepsi-Cola from his

drugstore to a rented warehouse. That

year, Bradham sold 7,968 gallons of

syrup. The next year, Pepsi was sold in

six-ounce bottles, and sales increased

to 19,848 gallons. In 1926, Pepsi

received its first logo redesign since the

original design of 1905.

Current Position

PepsiCo is the second largest food and beverage company in the world. It manufactures markets and sells a variety of salty, sweet and grain-based snacks, carbonated and non-carbonated beverages PepsiCo seeks to achieve growth and long-term value in its operational activities by creating competitive advantages through new product innovation

In 2006, PepsiCo acquired Izze Beverage Company Naked Juice and Stacys Pita Chip Company in the US, Star Foods in Poland, and Bluebird Foods in New Zealand. It has expanded its presence in the non carbonated drinks as well as snacks

The company’s volume grew by 5.5% in 2006 compared with 2005 In 2007, the company plans to expand its market share through further acquisition and joint ventures.

In 2009, company has its revenue upto 43.2 Billion US$ and its net income was 8.04 Billion US$.

Worldwide Market share of PepsiCo.

SWOT Analysis of PepsiCo.

Strengths

Company Image

Quality Conscious

Good Relation with Franchise

Market Share

Large No. of diversity businesses

Sponsorships

PRODUCT RANGE

Weaknesses

Decline in taste

Political Franchises

Short term Approach

Weak Distribution

Low Consumer Knowledge

Lack of Soft Drink

Financial Downfall

13,591 13,796 13,219

5,000

7,000

9,000

11,000

13,000

15,000

2007 2008 2009

Net Revenue (Comparative)

in Million US$

Years

Opportunities

Increase Population

Changing Social Trend

Diversification

Distribution of Snack Foods

Threats

Imitators

Government Regulation

Non-Carbonated and other Competitor’s Substitutes

Corporation’s Shortage Problem

Threat of Labor Strikes

RECOMMENDATIONS

Promotion their products through Effecting Marketing and

Advertising strategies.

Improving production efficiencies through optimal

outsourcing of production and integration.

Produce a range of Healthy, i.e. Sugar free or diet

Alternatives of different brands.