SWOT Analysis

The SWOT analysis is done to understand the internal condition of the Coke so as to understand its strategic framework and the extent with which it is using it for its expansion and prosperity.

Strength
The valuable human resource is the greatest strength for any company. One of the reasons for the success of Pepsi in USA as well as other markets is its reliance on valuable human resource. Also they possess licenses to open branches of its brand in other key markets and developing nations such as china, India etc.Both the brands have great brand name all across the world.

Weakness
The innovation in delivery of services as well as product development is the two major factors where Pepsi lacks behind Coke. The reason for this is the less use of technology in the fields of logistic segments and operations. Also great loses were made while researching for inorganic route of expansion.

Opportunities
The developing economies like India and China provide great opportunities for these companies. The market can also be tapped by the launching innovative and modern products depending upon the taste of the local customers and their preferences. A huge pressure is been faced by Pepsi as the customers have high expectations for the supply of health drinks as well as carbonated beverages. As a result there are large opportunities to adopt socially to make its supply chain innovative so that needs of the customers are fulfilled.

Threat
The changing political landscape and policies of developing countries as well as the slowdown in the major economies poses the biggest threat to Pepsi. Also Coke gives a tough competition to Pepsi in the global market. Besides these, the high inflation makes it difficult to decrease costs further and to improves profitability.

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