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Pepsi-Cola can use its strengths to effectively respond to the issues identified in
this SWOT analysis, especially those considered as threats. The realistic actions that
Pepsi-Cola could take to improve its competitiveness and international growth are as
follows:
1. Diversify businesses to minimize market risk exposure
2. Further penetrate developing markets to grow revenues
3. Improve product healthfulness to attract more consumers
4. Enhance recycling efforts to address environmentalism
Internal Strategic Factors
As a successful global company has one of the strongest brands in the market. This
strength enables the firm to attract consumers to its new products. In addition, the
broad product mix represents Pepsi-Cola’s increasing ability to reach various markets
and segments, such as through Frito-Lay products, Quaker products, and Pepsi
products. Pepsi Cola’s extensive global production and distribution networks are
strengths that support the company’s international growth and expansion strategies.
In this aspect of the SWOT analysis, Pepsi Cola’s strengths are sufficient to support
its global growth strategy.
Aggressive competition is a major threat against the company. The influence of the
Coca-Cola Company is especially significant against Pepsi-Cola. In addition, the
healthy lifestyles trend is a threat against Pepsi-Cola’s products, many of which are
seen as unhealthful because of their sugar, salt, or fat content. Also, environmentalism
threatens the company in how consumers negatively respond to product waste and
Life cycle issues. This aspect of the SWOT analysis indicates that Pepsi-Cola must
reform its strategies to overcome the threats to business.