Strength
? Pepsi has a broader product line and outstanding reputation.
? Merger of Quaker Oats produced synergy across the board.
? Record revenues and increasing market share.
? Lack of capital constraints (availability of large free cash flow).
o Great brands, strong distribution, innovative capabilities
o Number one maker of snacks, such as corn chips and potato chips
? PepsiCo sells three products through the same distribution channel.
For example, combining the production capabilities of Pepsi, Gatorade and Tropicana is a big opportunity to reduce costs, improve efficiency and smooth out the impact of seasonal fluctuations in demand for particular product.
Weakness
? Pepsi hard to inspire vision and direction for large global company.
? Not all PepsiCo products bear the company name
? PepsiCo is far away from leader Coca-cola in the international market - demand is highly elastic.
Opportunity
? Food division should expand internationally
? Noncarbonated drinks are the fastest-growing part of the industry
? There are increasing trend toward healthy foods
? Focus on most important customer trend - "Convenience".
Threats
? F&B industry is mature
? Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market e.g in India
? Over 50 percent of the company's sales come from Frito-Lay; this is a threat if the market takes a downturn
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