StrengthsLack of capital constraints (availability of large free
cash flow) Strong market position y Solid brand portfolio y Strong
revenue growth y Economies of scale y Broader product line y
Popular brand of p0p
WeaknessesConcentrated in North America (US, Canada, Mexico),
where almost 70% of revenues come from y Health Craze will hurt
soft drink sales.
Opportunitiesy y y y
Acquisitions & alliances Bottled water growth Hispanic
growth in the US and Pepsi's ability to meet their tastes with
current product lines (i.e., Sabritas chips) Growth in emerging
markets Growing consumer health consciousness will help Pepsi as it
is already a leader in non-carbonated drinks with brands Gatorade,
Aquafina, Lipton; and also with healthy food brands such as Quaker
oats.
ThreatsDeclining economy/recession y Sluggish growth of
carbonated drinks y Coca-Cola & other smaller, more nimble
operators y Commodity price increases, fluctuating oil prices
effect production and distribution (gas, plastic)
