SWOT Analysis of Pepsi


Pepsi is considered as one of the leading brands in the soft drink industry and its customer base is quite wide and varied. There are numerous brands of Pepsi and these brands are very popular all around the world. However, there are certain strengths, weaknesses, opportunities and threats that are associated with this brand. These aspects are discussed below:

Strengths
• The reputation of this brand is quite outstanding and customers prefer this brand over certain other brands.
• The cash flows of this organization allow then to acquire new organizations.
• The product lines of this organization are quite broader and they are of global nature.
• The brands of this organization are strong and they have innovative capabilities.
• Their distribution channel is quite wide and they actually sell three brands under this distribution channel (Stoddard & Kendall, 1997).
• They have huge advertising budget.
• The marketing intelligence of this organization is quite strong.

Weaknesses
• The vision and the direction of the organization cannot be figured out properly.
• The same brand name is used with all the products of Pepsi.
• Because of the highly elastic demand this organization is regarded as the second in the world after Coca Cola.
• The issues of Fat and Sugar are associated with this brand.
• Pepsi lags behind in certain countries like Russia, Venezuela and South America.
• Certain issues of the pesticides are also associated with this brand.

Opportunities
• Certain food divisions are included in the product line of this brand.
• They are concentrating more on the health oriented issues and focusing on the needs of the customer.

Threats
• The bottled water of Pepsi Co is facing extreme competition.
• They have to comply with the international and domestic standards of health and quality.
• Certain environmental issues are attached with the PET bottles (Gill, 2006).
• The increase in the crude oil and certain raw materials actually affects their final prices and the final cost of the finished goods.

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