Pest analysis Of PepsiCo

PEST Analysis Of PepsiCo
Did you know PepsiCo was founded 119 years ago?
Your grandparents likely remember when Pepsi Cola first appeared in their iconic glass bottles. But the company don’t just offer carbonated drinks anymore. They’ve branched out into snack foods too like Doritos, Gatorade, and Tropicana.
You would think a company as large and recognizable as PepsiCo would have no problems in today’s business landscape, but that couldn’t be further from the truth. The glory years are gone. Now PepsiCo is conforming to consumer demands or else they’ll lose their relevance. Especially with the latest boom in health consciousness.
Things are changing. But PepsiCo is ready. See what we mean by reading this PEST analysis of PepsiCo.
Contents

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  Political factors: Soda taxes are killer
  
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  Economic factors: The dollar working against them
  
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  Social factors: Moving along with the times
  
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  Technological factors: Everything they could ever want is at their fingertips
  

Political factors: Soda taxes are killer
A leading dominator in the soda industry is PepsiCo. Their (only worthy) rival is Coca-Cola. Although they’re often on one end of the boxing ring, in 2017 both companies grappled over a new American tax called the soda tax. The price of soda rose 3 cents per ounce when adopted by Philadelphia. Although this soda tax originated in 2015, it’s only now coming to light. And since Philadelphia’s adoption, Oakland, Seattle (Washington), San Francisco, and Boulder Colorado have also integrated this change.
The point of this law? For people to drink less soda. PepsiCo has already taken hits now that society is focusing on improving their health. Sugary drinks just don’t fit in anymore. That hasn’t stopped collaborations with governments overseas though. Not to mention Pepsi spent over $2.3 million on lobbying.
Want to know the truth? Consumer buying power is the only factor of success in business. If a customer isn’t buying, you’ve no sales, revenue, or profit. And with so many studies linking artificial sugar consumption to debilitating health conditions like diabetes, consumers are saying “Goodbye!” to carbonated drinks. They’re on the lookout for healthy alternatives and so far, PepsiCo hasn’t met the demand. Now, this soda tax, which studies show reduces soda consumption, will only worsen matters for the company.
Health-conscious laws are springing up all over the United States — and there’s nothing PepsiCo can do. Sure, they can toss millions towards marketing to change public opinion. But with health organizations (backed by the government) continuing to push for smart, healthy choice-making, PepsiCo will find their backs against the wall. They’re not out for the count, but they need to do something big sooner than later.