Pepsi Company


PepsiCompany is a multinational corporation that enjoys three majorstrengths. It has well-developed distribution channels and has beenable to satisfactory make its products available to over 150 nationsacross the world. Its brand awareness has enabled the company gain acompetitive advantage and command a high market share within thebeverage industry. The company has successfully been able to keepsecret its production recipes which maintain its products unique anddistinguishable.

Watermanagement and foreign currency fluctuations are the primaryweaknesses facing the organization. Water is the main ingredient forPepsi products. It is a scarce resource in many countries and beingable to manage it is increasingly becoming difficult. Over dependenceon the Wal-Mart stores weakness the company. Walmart is its keycustomer, and its strategies are influenced by the goals set by thisfirm. In any case, Walmart withdraws from the partnership it couldface a significant loss.

Theorganization has great opportunities such as the capacity todiversify and extend its reach. Having been known in almost allstates across the globe, Pepsi may not face significant challengessuch as barriers to entry into new ventures. The company has enoughcapital base and stability. Therefore it has a chance to extend itsgeographical reach and cover more grounds.

The primarythreat facing this organization is nutrition selection. A new trendhas been on the rise where people have shifted to consumption ofnatural and organic products. Some nations have gone to the extent ofthreatening to ban its products since they threaten health andincrease obesity. The company has also been facing competition fromCoca-Cola Company which is also a multinational corporation andmaintains the top position as the clear- cut winner.