TABLE OF CONTENT

1. Introduction……………………………………………………………...3
2. PEST…..………………….…….………………………………………..4
 Political Analysis for Pepsi……………………………………………...4
 Economic Analysis for Pepsi……………………………………………4
 Social Analysis for Pepsi………………………………………………..4
 Technological Analysis for Pepsi ………………………………………5
3. Porter Five Forces Analysis…..………………………………………...5
 Potential entry of new competitors ……………………………………5
 Potential Development of Substitute Products………………………..6
 Bargaining power of suppliers…………………………………………6
 Bargaining power of suppliers…………………………………………6
4. Conclusion ………………………………………………………………6
5. References……………………………………………………………….6

Introduction
A scan of the external macro-environment in which the firm operates can be
expressed in terms of Political, Economic, Social and Technological factors.
The acronym PEST is used to describe a framework for the analysis of these macro
environmental factors.
The model of pure competition implies that risk-adjusted rates of return should
be constant across firms and industries. However, numerous economic studies have
affirmed that different industries can sustain different levels of profitability; part of
this difference is explained by industry structure.
Michael Porter provided a framework that models an industry as being influenced by
five forces. The strategic business manager seeking to develop an edge over rival
firms can use this model to better understand the industry context in which the firm
operates
Here I have tried to explain the PEST and Porter Five forces analysis on Pepsi.
How PEST and Porter five forces help the beverages company like Pepsi to sustain in
beverage industry with success.
International markets have now become the hotspots for Pepsi. These markets
are Eastern Europe, Mexico, china, Saudi Arabia and India. Pepsi has 37% global
market share operating in 190 countries. Pepsi has a big enough market share to
challenge Coca Cola. They have their best balance of promotions, communicating to
their target audience through celebrities like Robbie Williams, David Bekham,
Britney Spears, etc. The Pepsi chart also helps in promoting as the youth like music.
Pepsi is gaining the football market from Coke. Pepsi also promotes on internet,
newspaper, through sponsorship, Radio, etc (ttp://www.pepsi.com/current/index.html)
Pepsi also promote its products in the supermarkets by keeping discounts like buy one
get one free. It also keeps competition with great prizes which catches the eye of the
consumer.