ASSIGNMENT # 01

“SWOT ANALYSIS”
SUBMITTED TO
MR ISHFAQ

SUBMITTED BY
SALMA RIAZ

REG #
FA09-BS(BA)-10/ATK

DATE
13th OCTOBER 2010

__________________________________

C O M S A T S
INSTITUTE OF INFORMATION TECHNOLOGY, ATTOCK

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SWOT ANALYSIS
NIKE

STRENGTHS

 Brand Name

 Financially Strong

 Strong Competitive Position

 Sells variety of models

 Effective Research and Development Department

 Effective promotional Activities

 Successful experience being competitive

 International Marketing Efforts

WEAKNESSES

 Use of Contract manufacturers makes it difficult to control quality of production

 Use of sports stars who fail to perform, retire or become injured could adversely
effect Nike image and consequently sales.

 Heavy dependency on footwear sales

 Use of contract manufacturing in foreign countries has the potential to create

financial problems due to foreign currency fluctuations and interest rate changes.

OPPORTUNITIES

 Nike must focus on Growing e-commerce, it will have positive effect

 Can grow in new and emerging markets

 Women demand for athletic footwear and clothing is increasing significantly

 Customer use of company’s products change from athletic purpose to a fashion

item

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THREATS

 Strong Competitors

 Consumer Preferences

 Currency Fluctuation

 Piracy of footwear and apparel designs could decrease sales and adversely
impact image.

 Political unrest in the suppliers countries

PEPSI

STRENGTH

 Pepsi has a broader product line and outstanding reputation.

 Merger of Quaker Oats produced synergy across the board.

 Record revenues and increasing market share.

 Lack of capital constraints (availability of large free cash flow).

 Great brands, strong distribution, innovative capabilities

Number one maker of snacks, such as corn chips and potato chips.

 PepsiCo sells three products through the same distribution channel.

For example, combining the production capabilities of Pepsi, Gatorade and
Tropicana is a big opportunity to reduce costs, improve efficiency and smooth out
the impact of seasonal fluctuations in demand for particular product.

WEAKNESS

 Pepsi hard to inspire vision and direction for large global company.

 Not all PepsiCo products bear the company name

PepsiCo is far away from leader Coca-cola in the international market - demand
is highly elastic.

OPPORTUNITY

 Food division should expand internationally.

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  Noncarbonated drinks are the fastest-growing part of the industry.

 There are increasing trend toward healthy foods

Focus on most important customer trend "Convenience”.

THREATS

 F&B industry is mature.

 Pepsi is blamed for pesticide residues in their products in one of their most
promising emerging market e.g. in India.

 Over 50 percent of the company's sales come from Frito-Lay; this is a threat if the
market takes a downturn.

 PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft foods
(because of broader product line) which are well-run and financially sound
competitors.

 Size of company will demand a varied marketing program; Social, cultural,

economic, political and governmental constrains.

TOYOTA

STRENGTHS

 New investment by Toyota in factories in the US and China saw 2005 profits rise.

 Diversified product range, highly targeted marketing and a commitment to lean

manufacturing and quality.

 In 2003 Toyota knocked its rivals Ford into third spot, to become the World's
second largest carmaker with 6.78 million units. Many are now saying that Toyota
may become the largest automaker surpassing General Motors by next year.

 Uses marketing techniques to identify and satisfy customer needs, and as

emphasized by the case video, on customer relationships.

WEAKNESSES

 Manufacturers need to make sure that it is their models that consumers want
versus competitors.

 Most products targeted to the US and Japan only - shifting attention to the
Chinese market

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  Movements in exchange rates could see the already narrow margins in the car
market being reduced.

 Company needs to cautiously keep producing cars in order to retain its

operational efficiency, especially in the case of the Prius, which the case study
states had a back-order dating back six months.

OPPORTUNITIES

 Lexus and Toyota now have a reputation for manufacturing environmentally

friendly vehicles.

 Lexus has RX 400h hybrid, and Toyota has it Prius.

 Rocketing oil prices have seen sales of the new hybrid vehicles increase.

 Toyota has also sold on its technology to other motor manufacturers, for example
Ford has bought into the technology for its new Explorer SUV Hybrid.

 Toyota is to target the 'urban youth' market. The company has launched its new
Aygo, which is targeted at the streetwise youth market.

THREATS

 In 2005 the company had to recall 88,000 SUVs and pickup trucks due to faulty
front suspension systems.

 Toyota faces tremendous competitive rivalry in the car market. Competition is

increasing almost daily, with new entrants coming into the market from China,
South Korea and new plants in Eastern Europe.

COCA COLA

STRENGTHS

 The product's image is loaded with over-romanticizing, and this is an image many
people have taken deeply to heart.

 The Coca Cola image is displayed on T-shirts, hats, and collectible memorabilia.

 Coca Cola's bottling system is one of their greatest strengths. It allows them to
conduct business on a global scale while at the same time maintain a local
approach.

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  Because Coke does not have outright ownership of its bottling network, its main
source of revenue is the sale of concentrate to its bottlers.

WEAKNESSES

 Although domestic business as well as many international markets are thriving

(volumes in Latin America were up 12%), Coca-Cola has recently reported some
"declines in unit case volumes in Indonesia and Thailand due to reduced
consumer purchasing power."

 Coca-Cola on the other side has effects on the teeth's which is an issue for health
care. It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems.

 Being addicted to Coca-Cola also is a health problem, because drinking of Coca-

Cola daily has an effect on your body after few years.

OPPORTUNITIES

 Brand recognition is the significant factor affecting Coke's competitive position.

 The primary concern over the past few years has been to get this name brand to
be even better known.

 Packaging changes have also affected sales and industry positioning, but in
general, the public has tended not to be affected by new products.

 Coca Cola's bottling system also allows the company to take advantage of infinite
growth opportunities around the world.

 This strategy gives Coke the opportunity to service a large geographic, diverse,
area.

THREATS

 The threat of new viable competitors in the carbonated soft drink industry is not
very substantial.

 The threat of substitutes, however, is a very real threat. The soft drink industry is
very strong, but consumers are not necessarily married to it.

 Consumer buying power also represents a key threat in the industry. The rivalry
between Pepsi and Coke has produce a very slow moving industry in which
management must continuously respond to the changing attitudes and demands
of their consumers or face losing market share to the competition.
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