Threats: Competition: The food and beverage industry is very competitive market with PepsiCo top competitors being Coca-Cola, Dry. Pepper, Snapped, and Kraft Foods. Commodity prices: Rises in commodity prices can potentially reduce profits for PepsiCo by increasing the cost of goods sold. Low growth rate in carbonated drinks:Low growth rate in carbonated drinks, which is recorded less than one percent in primary market of Pepsi.
Local players:Pepsi is facing the tough competition from coal brands in all over the world such as in Central and South America Kola Real also known as Big Cola in Mexico is giving tough competition to Pepsi etc. 2. Internal Origin: Strengths: Brand Recognition: PepsiCo, Frito Lay, Storage, Quaker, and Tropical. Brand Loyalty: PepsiCo has loyal customer base for its products. Brand Diversification: PepsiCo not only produces Pepsi-Cola but snack products and Juices as well. Global Participation: PepsiCo brands are not only sold in the U.
S. But in more than 200 countries world-wide. Strong Financial Position: PepsiCo brings in over $80 Billion in revenues yearly. Weakness: Non-Carbonated Drinks. The U. S. Market shows a recent trend that is shifting towards non-carbonated drinks. Health Food Alternatives. Consumers are becoming increasingly health conscious. Niche Marketing/Products. Pepsi ironically is
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