Pepsi SWOT

An internal analysis of Pepsi reveals some core strengths and weaknesses. Their strengths include a patient of output line and great reputation, number one maker of snacks, and they interchange three products through the same distribution channel. Pepsi, Gatorade, and Tropi push asidea share production capabilities which help in the reduction of costs, improves efficiency, and smoothes out the impact of seasonal fluctuations in consume for a particular product.On the other hand, Pepsi has some weaknesses that include Pepsi products that do non bear the company name, a lack of brand sensation with some of their products, and a majority of their sales comes from the U. S. market place and about 1/3 of their sales is from Frito-Lay. In Pepsis external environment they watch a few opportunities as well as some threats. Opportunities that they can take advantage of include the increasing trend towards healthier food, noncarbonated rackets which are the fastest growing part of t he industry, and international markets that they have not yet tapped into.However, Pepsi faces threats from several competitors such as Coca Cola and kraft paper 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 provide pose another threat to them. Pepsi uses a diversification outline that is keyed towards product innovation, close relationships with distribution allies, international expansion, and strategic acquisitions. to the highest degree of PepsiCo brands have achieved number one or number two positions in their respective food or beverage categories through these strategies.Furthermore, their management has a proven ability to capture strategic fits between the operations of modern 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 world(pre nominal) in order to increase efficiency in each area. In 2008, a new element in their corporate strategy was product reformulations to make snack foods and beverages healthier. This was a step in the right direction. It is very(prenominal) important for Pepsi to respond to the current trend of healthier food and drink options.Coke and PepsiThey should introduce a wide variety of noncarbonated beverages, such as water and orange juice, to the U. S. and abroad to increase their market share and remark profit growth. They can utilize their Power of One strategy in international markets, where their Frito-Lay brand is doing very well, to encourage the purchase of their beverages. When Pepsi acquired Quaker Oats it was a smart move to be able to offer consumers less flesh out snack foods. They should provide such alternatives through their Frito-Lay brand as well. If Pepsi implements these recommendations it will help ensure their top spots in the food and beverage industries.