This video will analyze PepsiCo company using a SWOT analysis. It will discuss the key PepsiCo strengths, weaknesses, opportunities and threats that affect the company in 2018, which might help you get a better understanding about the PepsiCo and its business.
The most important strength PepsiCo has is comprehensive product portfolio with 100 brands serving nearly every niche in the beverage, food and snack industries.
PepsiCo has become the second largest food and beverage company in the world today. The company earned US$63.525 billion in 2017, second only to Nestlé S.A. PepsiCo was able to achieve this via strengthening its product portfolio and offering as many different beverages and foods as possible.
The company sells nearly 100 different brands, of which 22 have each generated more than US$1 billion dollars in 2017. In addition, more than 10 brands have generated between US$500 million and US$1 billion in revenue.
PepsiCo’s brand portfolio is highly diversified. No competitor has as many high earning brands as PepsiCo. They each rely on a few main products to earn the majority of their revenue. This makes PepsiCo’ rivals very vulnerable to any changes in their core products’ markets.
As for the disadvantages, PepsiCo’s major weakness is overdependence on sales to Walmart and other retailers.
In 2017, sales to Walmart Inc., including Sam’s Club (Sam’s), represented approximately US$8.3 billion, or 13% of PepsiCo’s total net revenue.
Walmart is the single largest customer of PepsiCo. If Walmart’s retail market share happens to drop by only 5%, PepsiCo would lose at least US$415 million.
Let’s move on to the opportunities and the key opportunity for PepsiCo is a growing tequila market with many smaller brands that can be easily acquired.
PepsiCo operates in almost every non-alcoholic beverage segment and faces strong competition in each product category. There is little room for Pepsi to grow its beverage business and do it fast.
PepsiCo could expand its product offerings by venturing into the alcoholic beverages market. By leveraging its expertise in producing and selling beverages the company could easily increase its revenue and diversify its portfolio.
One of the threats that affect PepsiCo is that concerns over obesity and potentially dangerous substances may reduce the demand for some of the company’s products.
PepsiCo has already attempted to meet the consumer trend towards demanding healthier foods and beverages. It has transformed its product portfolio to include healthier options like juices, vitamin water and healthy snacks. Nonetheless, the company is still largely dependent on the sales of food and beverages that are both rich in calories and which may contain many substances that are perceived by the public as damaging to their health.
These are the key PepsiCo SWOT strengths, weaknesses, opportunities and threats. If you’d like to access many more of them, please visit our website https://www.strategicmanagementinsight.com/swot-analyses/pepsico-swot-analysis.html and purchase the PepsiCo SWOT analysis from there.
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