There is the SWOT analysis for Lays. Strengths are brand recognition, early mover advantage as well as large capital from Pepsi Co. Employing umbrella-branding strategy, Pepsi Co introduced the Lay to the Chinese market as a specific chip brand. In 1993, when there were no chip companies in China, Lays grew large and stable customer sizes as an early mover into the industry. Pepsi had enormous money to develop in the Chinese market, which was another advantage.
However, it has three main weaknesses. The quality of tosses, expensive labor cost as well as inefficient integration strategies.
By expanding the planting area in China, Lays seems less likely to guarantee the quality of their potatoes. Besides, increasing labor cost in China is a critical problem now that may deduct their profit. Pepsi Co. Has various product mix in China and it didn’t integrate them well to make a considerable profit.
Opportunities are quite self- explanatory. Huge potential growth in China, emerge into another Asian markets and modification of Chinese agriculture. China has 1. 4 billion people right now and it has he largest population in the world.
Besides, other Asian countries, for example, India, attracts Lays to get emerged as well. When growing potatoes in China, it imperceptibly changed the way that Chinese farmers plant potato with American technology, which is strategic collaboration. As for threats, Lays is facing the modification of Chinese agriculture, wealth consciousness, and the government influence. Since modification has two sides, it coaches local farmers how to plant potatoes on the one hand, on the other hand, it is likely that the government will step in and not let Lays get things done in its way.
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