swot analysis of pepsi with other soft drinks 75

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and Threats and is a simple and powerful way to analyze your company's present marketing situation. one by one. . all the VARs. Weaknesses. The following is the SWOT analysis included in its marketing plan. pushing boxes. STRENTH: Knowledge. WEAKNESSES: Costs. Relationship selling. but their cost per square foot and per dollar of sales are much lower. We are local. Their per-unit costs of selling are quite low. Our competitors are retailers. They aren't offering what we offer in terms of knowledgeable selling. programming. Opportunities. networks. connectivity. History. Lately it has suffered through a steady business decline caused mainly by increasing competition from larger office products stores with national brand names. The best way to understand SWOT is to look at an actual example: AMT is a computer store in a medium-sized market in the United States. We've been in our town forever. We get to know our customers. We have loyalty of customers and vendors.Ads by Google A REAL SWOT ANALYSIS SWOT ANALYSIS What is SWOT Analysis? A SWOT analysis stands for Strengths. The chain stores have better economics. We know systems. Our direct sales force maintains a relationship. and data management.

supposedly not needing support. and William D. and even in home offices. and we are in a better position to give it to them. Brand power. Because it concentrates on the issues that potentially have the most impact. Opportunities. OPPORTUNITIES: Local area networks. in color. IL: Irwin. THREATS: The computer as appliance. Text and Cases (Homewood. This is an opportunity for us because LANs are much more knowledge and service intensive than the standard off-the-shelf PC. The larger price-oriented store. The increasing opportunities of the Internet offer us another area of strength in comparison to the box-on-the-shelf major chain stores. our customers think we are not giving them good value. Service. Our customers want more help with the Internet. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans. our competitors are less likely than ever to provide it. Guth in Business Policy. 1969). SWOT (sometimes referred to as TOWS) stands for Strengths. When we have huge advertisements of low prices in the newspaper. Take one look at their full page advertising. The following diagram shows how a SWOT analysis fits into a strategic situation analysis. LANs are becoming commonplace in small business. they think they need our service orientation less. in the Sunday paper. and Threats. Learned. C.Price and volume. Training. training. Weaknesses. Their business model doesn't include service. As people think of the computer in those terms. just selling the boxes. The Internet. with LAN and Internet usage. SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. Situation Analysis . the SWOT analysis is useful when a very limited amount of time is available to address a complex strategic situation. Volume buying and selling of computers as products in boxes. Their component costs are less and they have volume buying with the main vendors. The major stores don't provide training. but as systems become more complicated. training is more in demand. connectivity services. etc. Businesses today assume LANs as part of normal office work. This is particularly true of our main target markets. As our target market needs more service. The General Electric Growth Council used this form of analysis in the 1980's. The major stores pushing boxes can afford to sell for less. We can't match that. Kenneth Andrews. The SWOT framework was described in the late 1960's by Edmund P. Roland Christiansen. We don't have the national name that flows into national advertising.

much of which may not be highly relevant. Factors should be evaluated across the organization in areas such as:         Company culture Company image Organizational structure Key staff Access to natural resources Position on the experience curve Operational efficiency Operational capacity . Internal Analysis: The internal analysis is a comprehensive evaluation of the internal environment's potential strengths and weaknesses. The SWOT analysis classifies the internal aspects of the company as strengths or weaknesses and the external situational factors as opportunities or threats. Strengths can serve as a foundation for building a competitive advantage. capitalize on golden opportunities. and weaknesses may hinder it. a firm can better leverage its strengths. and deter potentially devastating threats. The SWOT analysis can serve as an interpretative filter to reduce the information to a manageable quantity of key issues./ \ Internal Analysis External Analysis /\ /\ Strengths Weaknesses Opportunities Threats | SWOT Profile The internal and external situation analysis can produce a large amount of information. correct its weaknesses. By understanding these four aspects of its situation.

and are addressed in a PEST analysis. Opportunities can arise when changes occur in the external environment.     Brand awareness Market share Financial resources Exclusive contracts Patents and trade secrets The SWOT analysis summarizes the internal factors of the firm as a list of strengths and weaknesses. Many of these changes can be perceived as threats to the market position of existing products and may necessitate a change in product specifications or the development of new products in order for the firm to remain competitive. Knowing what a SWOT Analysis is and how to perform one is very important. Changes in the external environment may be related to:          Customers Competitors Market trends Suppliers Partners Social changes New technology Economic environment Political and regulatory environment The last four items in the above list are macro-environmental variables. Conclusion: . The SWOT analysis summarizes the external environmental factors as a list of opportunities and threats. External Analysis: An opportunity is the chance to introduce a new product or service that can generate superior returns. How to Perform a SWOT Analysis? A SWOT Analysis is an integral part of a marketing plan and can also be part of a business plan.

This SWOT analysis also shows PepsiCo's internal strengths such as their experienced management team. Internal Factors Strengths Weaknesses Management Experienced. a few weaknesses lie in the fact that the company is so large and could possibly lose focus or have internal conflict problems. the almost pure competition in pricing for its products. Companies are inherently insular and inward looking SWOT’s are a means by which a company can better understand what it does very well and where its shortcomings are. A few of the threats PepsiCo must stay aware of are the ease of reliability of its product line. Central to making SWOT analysis effective is accurate internal analysis – the identification of specific strengths and weaknesses around which sound strategy can be built. SWOT’s will help the company size up the competitive landscape and get some insight into the vagaries of the marketplace. broad base of interests and knowledge Large size may lead to conflicting interests Product Line Unique. SWOT analysis has been a framework of choice among many managers for along time because of its simplicity and its portrayal of the essence of sound strategy formulation . Another opportunity is that the income of consumers is high enabling them to be less price sensitive. and the continuous efforts by their research and development to research trends in the industry and to be creative in exploiting those trends. and the quickness of technological advances causing existing products to be no longer the most advanced.SWOT helps a company to se itself for better and for worse. competitive price. SWOT ANALYSIS OF PEPSI-CO The following table shows the internal and external factors affecting the market opportunities for PepsiCo. tastes good. a global marketing realm. Although PepsiCo has much strength. and convenience is becoming evermore important not only to the United States but to many countries around the world. a competitive product line.matching a firm’s opportunities and threats wit its strengths and weaknesses. Some possible opportunities noted in the SWOT analysis are the growing markets for specialized ethnic foods and healthier food products. and convenient .

New one calorie products have no existing customer base. may have trouble balancing cash-flows of such a large operation Manufacturing Low costs and liabilities due to outsourcing of bottling Lose control and quality standards Research & Development Continuous efforts to research trends an reinforce creativity May concentrate too much on existing products. diverse positions Possible conflicts due to so many people. may not be segmented enough Personnel International. large capital base High expenses. generic brands can make similar drinks cheaper Marketing Diverse. possible trouble staying focused Finance High sales revenue. such a high price may limit lower income families from buying a Pepsi product Competitive Distinctive name. high sale growth. product and packaging in with regards to its markets . and global awareness May lose focus. intra-preneuralship may not be welcomed External Factors Opportunities Threats Consumer/Social Huge market in the healthy products and growing market for specialized foods for ethnic groups More expensive products than Coke.

e. and is well known all over the world. 3. and more computerized manufacturing and ordering processes can increase their efficiency Computer breakdowns. 62% in Pakistan and leading a far step head from its competitors.S. of diversity businesses: .e.000 cases per day is not only in Pakistan but also in South Asia. 4.S. 2. 6. Large No. almost pure competition Legal/Regulatory High U. more tend to eat out. Market Share: It has a highest market share i. 60.Not entirely patentable. 5. constant replicability by competitors Technological Internet promotion such as banner ads and keywords can increase their sales. viruses and hackers can reduce efficiency. Quality Conscious: They maintain a high quality as Pepsi Cola International collect sample from its different production facilities and send them for lab test in Tokyo. Perception of producing a high quality product. Good Relation with Franchise: Throughout its history it has a good relation with franchisers working in different areas of the world where they have the production facilities. Company Image: It also is a reputable org. Very elastic demand. convenience is important to U. Production Capacity: It has the highest production capacity i. Food & Drug Administration standards eliminate overnight competitors SWOT ANALYSIS OF PEPSI IN PAKISTAN STRENTH 1. and must constantly update products or other competitors will be more advanced Economic Consumer income is high.

Pepsi foods iii. They started a campaign in which they highlight the factor such as “nothing official about it”. 3. In. 6. Lack of soft drink: . High Tech Culture: The whole culture and business operating environment at Pepsi-Cola-West Asia has quick access to a centralized database an they use computers as business tools for analysis and quick decision making. 8. Weak Distribution: They lack behind in catering the rural areas and just concentrating in the urban areas. Pepsi beverages ii. their era in government less taxes are imposed on them but relation increases as they come in opposition. 5. Wasim Akram. Also sponsor social activates programs like music etc. and Waqar Younas etc.This is also its main strength as it ahs diversity in many businesses such as i. 4. Sponsorships: They mainly use celebrities in their advertising campaigning like Imran Khan. So the selection is not appropriate as this thing is harmful to their image as well as the strategies. WEAKNESS 1. 7. Hamayun Ahkhtar is its franchisee who has a strong political support from a political party which is in opposition. Short term Approach: They have a lack of emphasis on this in their advertising such as currently when they losses the bid for official drink in the 96 cricket world cup. Political Franchises: Such as in Pakistan. Low consumer knowledge: Unable to maximize local consumer knowledge. Decline in taste: During the last years. Pepsi Restaurants. it was published in Financial post that there has been big complaints from the customers with regard to the bad taste that they experienced during the span of six months. 2.

Lack of soft drink “know-how” as a result of diversified business units and generalist managers OPPORTUNITIES 1. Government Regulation: They face problem if government employ taxes on them which force them to raise the price of their product. THREATS 1. it provide the company a favor to capture this fast moving market with its take away product. Non-carbonated substitutes: . Imitators: They also have a problem of imitators as receives complaints from customers that they find take product in disguised of Pepsi’s product. 2. 2. 3. So they have to attract new entrants. Corporation’s shortage problem: Again this is also a serious threat from it suppliers as if supplier is unhappy with the company. Changing social trend: As in all over the world people are rushing towards fast food and beverage because of life which has become much faster. 3. 4. Distribution of snack foods: Opportunity to distribute Pepsi snack foods in the future. This action will surely affect the production process. by making sports cloths fro players which represent their name by wearing their clothes. He may reduce the supply and exploit the company. Diversification: They may enter in garments business in order to promote their brand mane. Increase Population: As almost in all over the world growth rate is increasing which in turn increases the demand of products and necessities and especially in Asia the market is growing at a faster rate as compare to other continents. 4.

5. a matrix of these factors can be constructed. How to Perform a SWOT Matrix (TOWS Matrix)? A firm should not necessarily pursue the more lucrative opportunities. SWOT MATRIX (TOWS MATRIX) What is a SWOT Matrix (TOWS Matrix)? The SWOT Matrix illustrates how management can match the opportunity by facing your institution with its own strength and weekness to yield four sets of possible strategic alternatives. In some cases. Political instability: The big threat to Pepsi in Pakistan is Political instability and civil unrest. such as juices and tea brands are maintaining a strong foothold in the market. The SWOT matrix (also known as a TOWS Matrix) is shown below: SWOT / TOWS Matrix Strengths Weaknesses Opportunities S-O strategies W-O strategies Threats S-T strategies .Non-carbonated substitutes. the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity. Threat of labor strikes: External threat of labor strikes and power outages in Pakistan. To develop strategies that take into account the SWOT profile. The SWOT Matrix framework lends itself to brainstorming to create alternative strategies that you might not otherwise consider. 6. it may have a better chance at developing a competitive advantage by identifying a fit between the firm's strengths and upcoming opportunities. Rather.

These strategies are based on overcoming institutional weaknesses to take advantage of market opportunities. If they soon pay no attention towards that this will create a big problem for them. Hamayun Ahkhtar is its franchisee who has a strong political support from a political party which is in opposition. keeping in mind its SWOT analysis. where as the same product of the coke is not much strong.  W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats. It is also big threat for any company people may like or dislike new launching product. it was published in financial post that there has been big complaints from the customers with regard to the bad taste that they experienced during the span of six months.  Such as in Pakistan. . These strategies are based on institutional strengths to take advantage of market opportunities.   Large size may lead to conflicting interests. generic brands can make similar drinks – cheaper. So the selection is not appropriate as this thing is harmful to their image as well as the strategies.  They also have a problem of imitators as receives complaints from customers that they find take product in disguised of Pepsi’s product. New one calorie products have no existing customer base. During the last years. So this may become a big threat for the Pepsi. TOWS MATRIX OF PEPSI We have discussed SWOT analysis of Pepsi-Co in our previous topic now here we are going to discuss the TOWS Matrix of Pepsi-Co. Following is the detailed analysis of Pepsi-Cola TOWS matrix: ‘WT’ ANALYSIS  One weakness that Pepsi posses is that it has very strong taste it really feels that something highly toxic going inside the body. These strategies are based on institutional strengths to avoid market threats.  S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats. In.  W-O strategies overcome weaknesses to pursue opportunities.W-T strategies Basically four main strategies are proposed:  S-O strategies pursue opportunities that are a good fit to the companies’ strengths. their era in government less taxes are imposed on them but relation increases as they come in opposition. These strategies are based on overcoming/minimizing institutional weaknesses to avoid market threats.

The competitors may get benefit by their plans.  They lack behind in catering the rural areas and just concentrating in the urban areas. such a high price may limit a lower income family from buying a Pepsi product. by making sports cloths fro players which represent their name by wearing their clothes.  In foreign countries Pepsi have many branches with different flavors as compare to Pakistan. which has only 2 or 3 Pepsi products. which are its main competitor from about 100 years.  The other big weakness on Pepsi is that they don’t pay any attention towards garments. such as juices and tea brands are maintaining a strong foothold in the market. ‘ST’ ANALYSIS  In many countries Pepsi had more expensive products than Coke. Computer breakdowns. ‘SO’ ANALYSIS  The whole culture and business operating environment at Pepsi-Cola-West Asia has quick access to a centralized database and they use computers as business tools for analysis and quick decision making.‘WO’ ANALYSIS  They have a lack of emphasis on this in their advertising such as currently when they losses the bid for official drink in the 96 cricket world cup. if they fail in their efforts then there is a big threat for the company. They should try to increase their distributions and also focus on capturing rural areas.  The whole culture and business operating environment at Pepsi-Cola-West Asia has quick access to a centralized database and they use computers as business tools for analysis and quick decision making. If they don’t focus on sudden changing’s in their advertising then they can convert this weakness into opportunity.  Continuous efforts to research trends an reinforce creativity. and audit there statements on regular basis. Pepsi has a big threat from COKE. this will become a big opportunity for them.  High expenses may have trouble balancing cash-flows of such a large operation. Internet promotion such as banner ads and keywords can increase their . That must increase the customer and income of the Pepsi.  Pepsi is a foreign company therefore they have a big threat every time on them of Political instability and civil unrest. Non-carbonated substitutes. They may enter in garments business in order to promote their brand name. They should try to pay much attention towards their cash flow. They started a campaign in which they highlight the factor such as “nothing official about it”. and must constantly update products or other competitors will be more advanced. The staff may show dishonesty. viruses and hackers can reduce efficiency. therefore which is a big threat for Pepsi that may Pepsi have to face in the future.

and due to large number of diversity they can capture more customer.  It has the highest production capacity i.  They maintain a high quality as Pepsi Cola International collect sample from its different production facilities and send them for lab test in Tokyo.e. therefore it will become such a big opportunity for Pepsi. Wasim Akram. . Established network of 45 distributors each supplying 1. At will become such a big opportunity. if they show test reports on label of there products this will also attract customers.100 retailers. and is well known all over the world. and Waqar Younas etc.  They mainly use celebrities in their advertising campaigning like Imran Khan. of diversity businesses is also its main strength as it ahs diversity in many businesses such as Pepsi beverages. Perception of producing a high quality product and strength can become a big opportunity for Pepsi if they use it in well arranged manner. Due to large production the product of Pepsi is always available in the market and that will become useful to attract taste lovers customers. Also sponsor social activates programmed like music etc.000 cases per day is not only in Pakistan but also in South Asia.  Large No. High per capita soft drink consumption – average of 22 servings compared to 5 for Pakistan. Pepsi foods. So we can say that it is one of the big strength that may become a big opportunity for Pepsi.sales. 60. such as advertising more and also by conducting concerts to attract more customers. this will become such a big opportunity to build such a large number of customers. Pepsi Restaurants. and more computerized manufacturing and ordering processes can increase their efficiency and that will become such a big opportunity for Pepsi.  Pepsi is also a reputable organization.

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