SWOT annalysis Assignment Example | Topics and Well Written Essays - 500 words

SWOT annalysis - Assignment Example This paper examines the company’s strengths, weaknesses, opportunities and threats as depicted in the Figure 1 below. With regard to strengths, PepsiCo, Inc. is renown in maintaining top brands. Indeed, Pepsi is one of the most recognized brands in the globe. In the year 2008 for example, Pepsi featured in the 28th position in the top 100 global brands rankings. Furthermore, most of its other brands are top brands as well. They include Diet Pepsi, Lipton Teas, Tropicana, Aquafina Bottled Water, Quaker Foods and Snacks, Tostitos, Sierra Mist, Gastorade Mountain view among many others. Most of these brands dominate in over 200 countries worldwide. Another strength of PepsiCo, Inc. is product diversification. In this regards, Pepsi maintains a wide variety of products including juice drinks, snacks, bottled water, breakfast cereals, ready-to-drink beverages, cakes, among other. Also, PepsiCo, Inc. maintains an excellent distribution channel. In this regards, the company enhances proper the delivery of its products directly from the places of manufacture to the consumers and retail stores. The company also markets their own products, giving them a competitive advantage. With regards to weakness, PepsiCo, Inc. heavily depends on Wal-Mart. Approximately 12 percent of PepsiCo’s total net sales is sold to Wal-Mart (Datemornitor, 2011). This therefore implies that PepsiCo is greatly affected by Wal-Mart’s strategies to large extents. For instance, Wal-Mart’s low price strategy mounts lots of pressures to PepsiCo, Inc. Overreliance on the US markets also constitutes PepsiCo’s weakness. In this regards, a substantial portion of PepsiCo’s revenues originate from the United States. As such, the company is largely affected by changes in the economic condition in the US economy. With reference to opportunities, PepsiCo continues to broaden its product base. For example, PepsiCo, Inc. recently