- June 12, 2020
SWOTanalysis is important in developing organizations’ strategic plans.Notably, it provides an insight into both internal and externalfactors affecting an organization’s development (Rothaermel,2015). Withregards to the customer interviews conducted,and by the use of SWOT analysis as a tool, one is in a position toevaluate the business environment henceforth develop strategies tocurb the possible threats as well as take advantage of theopportunities.
Oneof the issues raised by the customers I interviewed is that Pepsi’sconsumers’ preference has shifted to natural and organic products.Notably, I will use this to advance the concept that Pepsi needs tofacilitate mobile campaigns that would enhance consumers` awarenessthat its products are safe and healthy for consumption. For example,it can promote campaigns associated with healthy living, forinstance, the anti-obesity campaign by educating people on differentcauses of obesity. Although the data collected does not give aninsight into the amount of demand for natural and organic drinks,Pepsi can, alternatively, carry out research on the same anddiversify its products to cater to this emerging need. Remarkably,this will give Pepsi a competitive advantage over other players inthe beverage industry.
Secondly,the interviewed customers indicated that the Pepsi distributionchannels are not well developed. Mainly, I will use this insight toinfluence the management to expand its supply chain. Currently, Pepsimostly depends on Wal-Mart store as their key customer indistributing its drinks. As a result, its ability to penetrate intoareas where Wal-Mart does not have a presence is hindered. Mainly,this situation can be reversed by Pepsi getting into partnershipswith other supply chain stores that operate in regions where Wal-Martlacks presence.
Thirdly,the customers indicated that Pepsi does not air many advertisementscompared to its competitors such as Coca-Cola. Remarkably, this willenable me to propose to the management team at Pepsi that there isneed to realign the company`s marketing strategy to have acompetitive edge. However, the data collected does not demonstratethe impact of different media used in an advertisement. I will ensureI do more research to determine the most effective media and how theadvert messages should be structured to achieve its intended goal.
Inconclusion, Pepsi needs to apply its strengths in handling itsthreats as well as tap into the emerging opportunities such as theshifting consumer demand for natural and organic drinks. It alsoneeds to partner with other companies to enhance its distributionline and avoid over-relying on Wal-Mart as its primary customer.Consequently, this will mitigate the risk of not operating in regionswhere Wal-Mart does not operate.
Rothaermel,F. T. (2015). Strategicmanagement.McGraw-Hill.