Company name: pepsi company logo

Weaknesses

1. Slow move into international bottled water market

2. Unequally distributed international sales of Quaker Oats Products (75% of international sales was accounted for by just six countries)
A large dependency on one business division in generating profits (Over 50 percent of the company's profits come from Frito-Lay North America)
3. Effects of Failed Products: Failure in any venture is a weakness. PepsiCo’s failed products such as Crystal Pepsi (Colorless Cola), Pepsi Blue, etc. demoralized employees and portrayed them as incompetent in the public sphere giving room for the competition to grow.

4. Controversial Advertisements: Companies are required to use their elevated position to advance society’s common good.

Opportunities

. Product Diversification: Diversification into different segments enables businesses to exploit benefits beyond their traditional field of operation and attain stability. Even though PepsiCo has 22 brands under its portfolio, all these brands are concentrated within the food and beverage industry. PepsiCo can exploit benefits in other segments by diversifying its products portfolio into other sectors beyond food and beverages, such as sportswear, through the acquisition of a small but established sportswear brand. PepsiCo can also diversify its product portfolio to include alcoholic beverages. The company recently announced that it was considering expanding into the alcoholic market after Coca-Cola Co announced they would be introducing an alcoholic drink in the US market in 2021.

2. Expand E-Commerce: More customers are using digital channels for online shopping. PepsiCo has the opportunity to exploit the benefits of online shopping by expanding its e-commerce (mobile apps) and grow sales through these channels.

3. Enhance Alliances and Partnerships: In a globalized marketplace, businesses that seek and nurture strong alliances and partnerships are more successful. For example, PepsiCo can extend the current partnership with Starbucks into other areas to harness all benefits of their partner’s numerous coffee outlets.

4. Increase Consumer-Driven R&D: Adaption to changes in the marketplace is the key to success. PepsiCo has the resources to increase investment in research and development, manufacturing, and go-to-market capabilities and attain an edge over competitors in the changing consumer and retail landscapes. In FY2019, PepsiCo spent over $710 million on research and development, with its R&D expenses ranging between $665 million and $760 million in the past seven years.

5. Expanding Operations in Emerging Market: The rapid growth and improved economic situation in emerging markets in Africa, Asia, and South America provide PepsiCo with an invaluable opportunity to expand its operations in these markets and grow its customer base.