PepsiCo Inc Analysis

Talent management is organizational processes structured to attract, motivate, develop and retain the productive and talented employees. The significance of talent management is to create a sustainable and high performance organization that is able to meet its operational and strategic objectives and goals. The analysis of the an organizational strengths, weaknesses, opportunities and strengths is a good start in the analysis of the talent management since it ensures that the initiative is adding some value to the organization. Strengths are the business features that allow the business to operate effectively than the competitors. Weaknesses are the areas that are capable of improvement. Opportunities are any interesting areas or trends that the business can take advantage of. Threats are any factors that pose a risk to the business.

PepsiCo Inc. is a publicly traded company in the food and beverage industry. Having been established in the 1890s by Caleb Bradham a pharmacist, it was not until 1903 that the company became publicly traded. As such, the company was provided with an excellent opportunity to operate within the larger United States of America market, and this set the beginning for the globally recognized company (Gamble & Thompson, 2013). Today, the company is a major player in the industry and the second largest beverage company in the world behind Coca-Cola. The company is a global company operating in more than 200 countries and has many products in the market.  The success and growth of the company is due to its increasing market share, brand loyalty, competitive advantage, as well as enhancement of customer confidence and loyalty.


  • What is PepsiCo Inc share of the products in the market?
  • Is the product portfolio of PepsiCo Inc diversified?
  • Are the best practices being utilized by PepsiCo Inc?


  • Can PepsiCo Inc meet challenges from competitors?
  • Is the clientage limited to a few customers?
  • What are the general customer complaints?


  • What are the emerging market trends that are in accordance with strengths of the PepsiCo Inc?
  • Are there products or services that have not yet been provided by the competitors?
  • What are the national and international changes that are favorable for PepsiCo Inc?


  • Is the brand of competitors too popular in the market?
  • Are there any other external threats that may affect PepsiCo Inc?
  • Are the product specifications changing too rapidly?


PepsiCo enjoys a significant market share in the industry. In the U.S. alone, the company holds a market share of 25.4 % in the beverage market behind Coca-Cola but is dominating the snacks market with 36.4 % market share (Team, 2015). The beverage segment of the industry has been on the decline due to the growing health concerns. However, while the health concerns have had an impact on the soft drinks, it has not affected the sales for the snacks with high cholesterol. An example is the Frito-Lay which has strengthened in North America division. The decline in soft drinks sales has affected all the players in the industry but the snacks segments in favor of PepsiCo which has a higher market share.

The company has a highly diversified portfolio of products. This ensures that the risks in the market are spread along a wide variety of products. The company also has popular subsidiary brands such as Frito-Lays, Tropicana, Quaker Oats Company, Quaker Foods North America and Gatorade. These subsidiaries have been very influential in the growth of the company. The PepsiCo Company is known to be ethical in its conduct of business (Young, 2015). Only this year, the company was named among the world’s most ethical companies for the 10th consecutive year. It also appeared in the Corporate Responsibility Magazine to be among the world’s 100 best corporate citizens.  The company is also a recipient of the Water Prize from the U.S. Water Alliance in 2012. These are all demonstrations of how the company follows the best practices in the industry.


The major threat faced by the company is competition.  Though the company is the second largest in the industry behind Coca-Cola, there are other players coming up in the industry such as Rebbull, Living Energy and Hansen Natural Corporation. However, the company has diversified portfolio products that enable the company to counteract competition from other players (Team, 2015). Another weakness is that the company has not maximized on the markets outside America. Though the company operates in more than 200 countries, there is still room to expand operations in these countries.

In recent years, the consumers are becoming very health conscious. With the high increase in diseases such as obesity, people are very considerate of what they eat and drink. This has led to the decrease of sales in the beverage segment of the market (Young, 2015). The marketing endeavors are mostly directed to the non-conscious consumers. However, the snacks industry is very promising to the company.


Diversification is the market trend recently. Many companies are diversifying their products; this is a good opportunity for the company to further diversify its products. With the success the company has had, it is capable of venturing in other market segments.  This will enable the company to diversify risks.

The company has an opportunity to form alliances with complementary businesses. This will enable the company to increase its market presence (Young, 2015). Again, just like the company has been able to acquire other brands, the endeavors should be increased and many more brands acquired in different regions. In addition, the company has an opportunity to improve its brand image by getting involved in more corporate social responsibility activities in the communities where it operates.


PepsiCo faces fierce competition from the industry leader Coca-Cola. Through the years, Coca-Cola has managed to build its brand name. In addition, the distribution channels used by Coca-Cola ensure that the products are tailored to the local markets. The competition presented by Coca-Cola is a threat to the company. Most of the PepsiCo Inc products are seen by people as unhealthy because of their salt, sugar, and fat content. The healthy lifestyle adopted by consumers in this century is against the products of PepsiCo Inc. In addition, environmentalism poses a threat to the company (Gamble & Thompson, 2013). Consumers respond negatively to the waste and lifecycle methods of the company.

The increased regulations on bioengineered foods and ingredients poise a threat to the company. It is hard to differentiate these bioengineered products and PepsiCo has a hard time. In addition, the ingredients used are outsourced from outside suppliers increasing the risk of accessing bioengineered products. Again, with the health conscious campaign that people have embarked on especially in America, this poses a threat to the company products.



Gamble J., & Thompson, A., (2013). Essentials of strategic management: The Quest for Competitive Advantage. New York: McGraw-Hill/Irwin.

Team, T. (2015). Forbes Welcome. Retrieved 2 July 2016, from

The Statistics Portal. (n.d.). Market share leading carbonated beverage companies worldwide, 2015 | Statistic. Retrieved March 03, 2016, from

Young, J. (2015, December 02). PepsiCo SWOT Analysis & Recommendations – Panmore Institute. Retrieved April 11, 2016, from


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