Download SODASTREAM AND PEPSICO MERGER SWOT ANALYSIS and more Lecture notes Communication in PDF only on Docsity! SODASTREAM AND PEPSICO MERGER SWOT ANALYSIS ANALYSIS OBJECTIVES Show how the Soda Stream and Pepsi-Co merger is beneficiary even considering weaknesses and threats, in preparation for an upcoming communication plan. INTERNAL FACTORS STRENGTHS (+) WEAKNESSES (-) The merger will tap into the more health and sustainability minded market (Pepsi Merger, 2018). The merger will give Pepsi-co a “razors and blades” product that people will have to buy their products to continue to use their machine at home. This includes syrup packets and the CO2 cans if people just want fizzy water (Pepsi Merger, 2018). Since the merger, stocks have already begun to rise (49 percent) due to the fact that the company is showing an interest in sustainability and using less waste, while catering to the new generation who values these practices (Pepsi Merger, 2018). Others, such as Coca-Cola have tried something similar but found there to be a weak market for at home soda machines (Pepsi Merger, 2018). Will the general public equate healthiness with at home soda machines? In a country where most of the water consumed is sparkling, SodaStream only has an 8% share (Kowitt, 2018). SodaStream and PepsiCo already had a flop together in 2015, with flavored caps to add to sparkling water (Kowitt, 2018). EXTERNAL FACTORS OPPORTUNITIES (+) THREATS (-) In addition to this merger, PepsoCo has founded “The Hive” to help develop emerging brands. This could garner attention on social media (Kowitt, 2018). Developing smaller brands can help give PepsiCo a more niche, small business feel that consumers are currently seeking (Kowitt, 2018). A strategic social media campaign that helps the public understand the sustainability and health benefits of the at home soda machine is paramount to its success. There are many ways to execute this, and a multichannel approach would likely garner more attention. Consumers are starting to shun sodas and other un- healthy beverages and go towards products with less sugar and ingredients (Pepsi Merger, 2018). Before this merger, PepsiCo had declining sales four quarters in a row, which means that unless the buzz about this and other mergers is maintained, the merger success could be short lived (Kowitt, 2018). SodaStream already had to shift from a platform of home soda machine to sparkling water machine in order to stay afloat. How long is this new platform going to sustain it (Kowitt, 2018)? REFERENCES Kowitt, B. (2018, August 20). PepsiCo is acquiring SodaStream for $3.2 billion. Fortune. Retrieved from http://fortune.com/2018/08/20/pepsico-sodastream-acquisition/ Pepsi Merger. (2018, August 20). Here's why Pepsi is buying SodaStream for $3.2 billion. Time. Retrieved from http://time.com/5371632/pepsi-pepsico-sodastream-merger-deal/
