SWOT Analysis

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What is SWOT Analysis: The SWOT is an acronym for Strengths (positive critical factors), Opportunities (positives that we can take advantage using our strengths), weaknesses (negative critical factors ) and Threats ( external negatives that could hinder the achievement of our goals).SWOT Analysis

It can also be found as “Matrix SWOT analysis” or “SWOT Matrix”.

SWOT: Strengths, Weaknesses, Opportunities, Threats.

The SWOT matrix is an analytical tool that can be applied to any situation, person, product, company, etc, which is acting as an object of study in a given moment of time.

It is as if an “X” from a point of the particular situation that this study was taken. The analyzed variables and what they represent in the matrix are particular to that time. After analyzing them, they must make strategic decisions to improve the current situation in the future.

SWOT analysis is a tool that helps build a picture of the current situation of the study object (person, company or organization, etc) thus enabling accurate decisions consistent with the objectives and formulated policies.

After completing the first SWOT analysis it is advised, successive analysis periodically taking as reference in order to know if we are meeting the goals that are outlined in our strategic development. This is advisable because the external and internal conditions are dynamic and some factors change over time, while others suffer minor modifications.

The frequency of these analyzes update depends on the type of object of study which is concerned and in that context we are analyzing.

In terms of the marketing process, we say that the SWOT matrix is the link that allows us to move from analysis of the internal and external environments of the company towards the formulation and selection of strategies to follow in the market.

The primary objective of SWOT analysis is to draw conclusions about the way the studied object will be able to cope with change and turbulence in the context (opportunities and threats) from its internal strengths and weaknesses.

That is the essential first step for a correct SWOT analysis, the next is to determine the strategies to follow.

To start a SWOT analysis should make a crucial distinction between the four variables separately and determine which elements correspond to each.

In turn, at every point of time when the analysis is done, it would be advisable not only to build the SWOT matrix for the present but also project different future scenarios with consequent SWOT matrix and propose alternative strategies.

Both are internal strengths and weaknesses of the organization, so it is possible to act directly on them, Instead the opportunities and threats because they are external.

Strengths: They are the special abilities available to the company, and allows you to have a privileged position against the competition. Control resources, skills, and abilities that are possessed, and activities that develop positively, etc.

Opportunities: They are those factors that are positive, favorable, exploitable, to be discovered in the environment in which the company operates, and enable competitive advantages.

Weaknesses: They are those factors that cause an unfavorable position against the competition, resources are lacking, not possess skills, activities that do not develop positively, etc.

Threats: These are the situations that come from the environment and can reach even attempt against the permanence of the organization.
SWOT analysis is not limited only to develop four lists. The most important part of this analysis is the evaluation of the strengths and weaknesses, opportunities and threats, as well as drawing conclusions about the attractiveness of the situation under study and the need to take a particular action. Only this type of analysis and SWOT comprehensive evaluation, give us solution so that we will be able to answer questions such as:

It has the internal strengths and core competence company on which to create an attractive strategy?
The weaknesses of the company make it competitively vulnerable and disqualifying to look for certain opportunities? What weaknesses need to correct the strategy?
What opportunities can search the company successfully through the skills, capabilities, and resources that account?
Our current strategy is working or not?
What strategies should we adopt?
How strong is the competitive position of the company?
What are the strategic issues that we are facing right now?
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Transcript

1. SWOT Analysis Created by Mehwish Sidra Bashir Umer Rabbani Samiullah www.tapedaily.com
2. SWOT ANALYSIS SWOT helps a company to se itself for better and for worse. Companies are inherently insular and inward looking SWOT’s are a means by which a company can better understand what it does very well and where its shortcomings are. SWOT’s will help the company size up the competitive landscape and get some insight into the vagaries of the marketplace. SWOT analysis has been a framework of choice among many managers for along time because of its simplicity and its portrayal of the essence of sound strategy formulation - matching a firm’s opportunities and threats wit its strengths and weaknesses. Central to making SWOT analysis effective is accurate internal analysis – the identification of specific strengths and weaknesses around which sound strategy can be built.
4. INTRODUCTION Pepsi is a carbonated soft drink produced and manufactured by PepsiCo. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1898. In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1926, Pepsi received its first logo redesign since the original design of 1905.
5. Current Position PepsiCo is the second largest food and beverage company in the world. It manufactures markets and sells a variety of salty, sweet and grain- based snacks, carbonated and non-carbonated beverages PepsiCo seeks to achieve growth and long-term value in its operational activities by creating competitive advantages through new product innovation In 2006, PepsiCo acquired Izze Beverage Company Naked Juice and Stacys Pita Chip Company in the US, Star Foods in Poland, and Bluebird Foods in New Zealand. It has expanded its presence in the non carbonated drinks as well as snacks The company’s volume grew by 5.5% in 2006 compared with 2005 In 2007, the company plans to expand its market share through further acquisition and joint ventures. In 2009, company has its revenue upto 43.2 Billion US$ and its net income was 8.04 Billion US$.
6. Worldwide Market share of PepsiCo.
7. SWOT Analysis of PepsiCo. Strengths  Company Image  Quality Conscious  Good Relation with Franchise  Market Share  Large No. of diversity businesses  Sponsorships
8. PRODUCT RANGE
9. Weaknesses  Decline in taste  Political Franchises  Short term Approach  Weak Distribution  Low Consumer Knowledge  Lack of Soft Drink  Financial Downfall
10. 13,591 13,796 13,219 5,000 7,000 9,000 11,000 13,000 15,000 2007 2008 2009 Net Revenue (Comparative) in Million US$ Years
11. Opportunities  Increase Population  Changing Social Trend  Diversification  Distribution of Snack Foods
12. Threats  Imitators  Government Regulation  Non-Carbonated and other Competitor’s Substitutes  Corporation’s Shortage Problem  Threat of Labor Strikes
13. RECOMMENDATIONS  Promotion their products through Effecting Marketing and Advertising strategies.  Improving production efficiencies through optimal outsourcing of production and integration.  Produce a range of Healthy, i.e. Sugar free or diet Alternatives of different brands.