PepsiCo SWOT Analysis

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PepsiCo SWOT analysis

I.  Strengths

Branding

        Pepsi is one of PepsiCo’s most recognizable brands worldwide.  It ranked in the top 25 of the top 100 global brands (Lexis Nexis).  Pepsi alone generates over $15,000 million in annual sales for PepsiCo.  Pepsi’s broad recognition is accompanied by other PepsiCo brands such as Gatorade, Mountain Dew, Thirst Quencher, Lay’s Potato Chips, Lipton Teas, Tropicana Beverages, Fritos Corn Chips, Tostitos Tortilla Chips, Doritos Tortilla Chips, and Aquafina Bottled Water.   The strength of these well-recognized brands is evident in PepsiCo’s presence in over 200 countries.  PepsiCo has one of the largest market shares in the US beverage industry at 39%, and snack food industry at 25% (Lexis Nexis).  Brand dominance such as this assures repetitive sales and customer loyalty.  

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Diversification

        The diversification of PepsiCo is evident in that each of its top 18 brands generates over $1,000 million in annual sales (Lexis Nexis).  PepsiCo products range from carbonated beverages to cake mixes.  This broad product base helps to insulate PepsiCo from shifting business climates.  

Distribution

        PepsiCo delivers its products directly from its manufacturing factories and warehouses to customer warehouses and retail stores.  This approach also includes employees making direct store deliveries of snacks and beverages and the use of third party distribution services.  PepsiCo’s multi-channel distribution system strengthens the companies hold in ...

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