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Swot, Pestle and Porter's 5 Forces Analysis of Pepsi Co

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SWOT, PESTLE and Porter's 5 forces analysis of Pepsi Co

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Introduction

Coca Cola and Pepsi Cola today invaded the distribution shelves all around the world, they are truly world magnates in the soft drink industry. What make them so popular, how they do success in the high competitive market, which obstacles and barriers they have though and what strategy they employ to overcome them, is to be evaluated in this paper. The PESTEL analysis, the Porter's 5 Forces and SWOT frameworks will be the means of the evaluation.

Pepsi Co company overview

PepsiCo engages in the soft drink, juice and snack food businesses. PepsiCo started in North Carolina nearly a century ago. Overtime, it has turned to be one of the most-loved beverages in the world. Today, PepsiCo, Inc. is one among the most successful consumer products companies in the world, with distribution networks in more than 190 countries on five continents. Pepsi has several of the strongest brands and most respected products available in the market. In the beverage sector Pepsi Cola North America is the world's second largest beverage company; in the snack food sector, Frito-Lay Company is the world's largest manufacturer and distributor of snack chips. PepsiCo, Inc. was found in 1965 through the merger of Pepsi-Cola and Frito-Lay. PepsiCo's success is the result of price strategies, customer service, superior quality and choices products, high standards of performance, distinctive competitive strategies and the high integrity of their people (www.pepsico.com).

SWOT analysis of PepsiCo

Strengths

* Pepsi Company is the biggest soft drink maker in the world after the Coca Cola company

* Due to its 'smaller fame' it does not have many myths about Pepsi's harm to health, even though it has similar to Coke's ingredients. This make some customers to prefer Pepsi to Coke

* Pepsi wisely used music, a traditional form of teenage rebellion, as a key component in its strategy, the current Pepsi theme, "The choice of a new generation," is another expression of its youth strategy, which is the key point of attack against the "older" Coca-Cola product.

* Pepsi is about 9 percent sweeter than Coke, the first taste favors Pepsi (www.marketresearch.com).

Weaknesses

* The glass bottles require a bottle opener, what restricts mobility

* Pepsi had been on the market much shorter than Coke

* Promotional campaigns yield to Coke's

* Pepsi price is more expensive than Coke

Opportunities

* New packaging with lighter, ecologic materials could be developed

* The ways to decrease input cost should be considered to lower output prices too

* Aggressive promoting campaign needs to be developed

Threats

* The use of GM corn to produce high-fructose corn syrup may subject this company to lawsuits and possible boycotts, subject the company to financial damage and erode the market share

* Due to higher price customers can switch to Coke

* Possible switch of customers to healthier drinks, such as fresh water and juice

PESTLE analysis of Pepsi Co

Political

 Coca - Coke and Pepsi-Cola are American

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