Question

Each student will select two (2) competing fortune 500 Companies, i.e. Microsoft and Apple, and do a complete SWOT analysis of each. Upon the completion of each SWOT analysis, the student will discuss in detail the area(s) they feel each company has a competitive advantage and what area(s) each company may have an opportunity for growth.

I NEED HELP CAN SOMONE DO THIS PLEASE

The 2 companies I picked is Coca Cola and Pepsi

Answer 1

SWOT of COCOCOLA

Strengths in the SWOT of Coca Cola

1. Brand Equity – Inter brand in 2011 awarded Coca cola with the top brand equity award.
2. Company valuation – Coca Cola is one of the most profitable companies in the world, the net worth of Coca cola is around $79.2 billion. This net worth valuation also includes the brand value, the numerous factories and assets spread out across the world.
3. Vast global presence – Coca cola is doing its business in around 200 countries across the world. This vast global presence of coca cola has also contributed to the building of the company’s brand name.
4. Largest market share – There are only two big competitors in the beverages market 1. Pepsi and 2. Coca cola. Out of these 2, coca cola has the huge market share.
5. Fantastic marketing strategies – Coca cola covers all the age groups of people where as pepsi always concentrates on youngsters. Thereby Coco Cola wins people hearts.
6. Customer Loyalty – It is natural that Coca cola has a lot of customer loyalty because of its products. The products like Coca cola and Fanta have a huge fan following from the public.
7. Distribution network – Coca cola has the best distribution network because of the public demand of its products in the market for its products. Coca cola has been able to command such a high market presence due to its successful distribution network,

Weaknesses in the SWOT of coca cola

1. Competition with Pepsi – Pepsi is the major competitor for Coca cola. Coca cola will be the clear market leader if there is no Pepsi in the market. The competition in these two brands is immeasurable and I am not having idea that Pepsi will give up so easily.
2. Product Diversification is low – The Pepsi has made a smart move and got diversified into the snacks division with products like Lays and the company Coca cola is not having such segment. The segment is giving good revenue to Pepsi.
3. Absence in health beverages – If you watch the news, you would know that obesity problems effecting the people now a days. The business environment is changing and people are taking safety measures to protect them from these obesity problems.

Opportunities in the SWOT of coca cola

1. Diversification – Diversification in the health and food business will improve the offerings of Coca cola to their customers. This will also ensure that they get better income from existing customers by cross selling their additional products. The supply chain which is distributing their beverages can also able to distribute these snacks thereby sharing the load of Supply chain expenses.
2. Developing nations – The developed nations have a high presence of Coca cola, these countries are slowly moving towards healthy beverages. The developing countries are still accustomed to the carbonated drinks and soft drinks. Thus the higher consumption in developing countries can be a good opportunity to capitalize for Coca cola.
3. Packaged drinking water – With hygiene becoming a major factor in the consumption of water, Packaged drinking water has found its way into people’s mind. Coca cola has a packed drinking water segment though Kinley. Though Kinley’s expansion is slow as of now, Kinley can have a huge potential of expansion.
4. Supply chain improvement – Supply chain can be a major cost sink hole, since the transportation costs always rising. The complete business of Coca cola’s was based on transportation and distribution. There will always be possible improvements in this area.

Threats in the SWOT of coca cola

1. Raw material sourcing – Water is the major threat to Coca cola company. The weakness of Coca cola was the suspected use of pesticides or vast consumption of water. Water sourcing is an end which can fall at anytime on the head of Coca cola. If water is limited, then Coca cola can experience a huge downfall in their sales turnover and distribution capacity. The same can affect its rival company Pepsi also.
2. Indirect competitors – Coffee chains like Starbucks, Cafe coffee day are on the rise. These chains offer competition to Coca colas soft drinks. Health drinks like Real & Tropicana and energy drinks like Red bull are reducing the market share of Coco Cola indirectly.

SWOT of PEPSI

Strengths in the SWOT Analysis of PepsiCo :

• Brand equity: PEPSI Co. is one of the most popular and famous brands in the world in the food and beverage industry. PEPSI Co. is also known for youth brand. It has a high brand recognition and reputation. It has a brand valuation of $19.4 billion and it is ranked 29 in the most valuable brands list.

• Strong Leadership: Under the leadership of Indra Nooyi PepsiCo. has been performing well. PEPSI Co. has managed to stay at number 2 position in the complete food and beverage industry after Nestle in that field.
• Customer Loyalty: PepsiCo. has an extremely loyal customer base. In its beverage segment all its soft drinks have an iconic taste and that’s why the customers will not prefer to shift brands.
• Strong distribution: Pepsi has a global presence in more than two hundred countries providing them with a very strong distribution network.
• Supply Chain: It has one of the strong supply chain networks in the world, making their soft drinks available to all over the world.
• Clear target audience: Pepsi, unlike Coca Cola has always had a clear target audience i.e., the youth people. It always targets youngsters through its advertisements and generally the youngsters are shown to be smarter than the old ones.

Weaknesses in the SWOT analysis of Pepsi :

• Competition: PEPSI Co. is experiencing heavy competition from Coca-Cola in the soft drinks category. The 2 companies are always neck to neck with each other.
• Products recognized as unhealthy: Most of the soft drinks of the PepsiCo is recognized as unhealthy.
• Product Diversion: The PEPSI Co. is only present in the food and beverage industry which can be harmful in the longer run. They need to diversify their business to other product markets in order to become a global leader.
• Products Failure: Products failure such as ‘Crystal Pepsi’ which damages the brand image of the PepsiCo and thereby giving way to the competitors to grow.

Opportunities in the SWOT analysis of Pepsi :

• Healthy Options: It should work more on improving the health implications of their products and make the customer knowledge of the same. Diet Pepsi is a positive move for PEPSI Co. for increase their sales.
• Diversification: Business diversification into different market divisions is a huge opportunity. They have the resources and financial background to do the same. This can also be done by purchase of other companies.
• CSR: PEPSI Co. can do more CSR activities to eliminate the negative feedback which will hurt the brand image of the PEPSI CO.
• Research &Development: Recently PepsiCo came out with better healthier options in a soft drink. To make Seven Up by using the substitute of sugar called Stevia. This can prove to be a game changer.
• Flavors: PEPSI Co has introduced various flavors such as watermelon, raw mango etc. By introducing such flavors even in carbonated beverages can help Pepsi to attract a larger market.

Threats in the SWOT analysis of PepsiCo :

• Competitors: PepsiCo’s main competitors are Coca-Cola, Nestle and Mondelez.
• Health Factor: The unhealthy factor combined with its products can take a cost on the health conscious customers and might lose the customers.
• Government Norms: Different norms taken by the various countries might prove difficult to comply with it as well.