1) Politics – like tobacco companies in the late 20th century, food and beverage companies can now be targets of lawsuits related to health concerns – PepsiCo has fought tooth and nail against regulations, taxes and initiatives to reduce obesity – In 2001, Boston Mayor Thomas Menino banned junk food and soda in Boston public schools the city, and further banned the sale of high-sugar, high-calorie drinks on city property - New York City Mayor Michael Bloomberg attempted to ban the sale of high-sugar drinks in containers larger than 16 ounces, but this ban was challenged and halted, with the New York State Supreme Court judge ruling that Bloomberg had to go through the city council and board of health to institute the ban. ban- The industry is concentrated, with a few large companies owning the majority of brands. The Coke vs. Pepsi rivalry itself is very intense. Market growth is no longer as high as it once was, and the market appears to be fragmenting due to obesity concerns and the need to develop more nutritious offerings. With Pepsi, the leading mega-brand, PepsiCo has segmented its products into three segments: fun for you (Doritos), better for you (diet soda) and good for you (Quaker), meaning they are able to better target consumers - PepsiCo has invested heavily in R&D - PepsiCo's products have been used by approximately 3 billion people each year. Weaknesses - Nooyi's strategy to grow the 'Good for You' product category is seen by some as a loss for PepsiCo's major brands - PepsiCo seen as disingenuous in their 'health conscious' efforts due to their fight against regulations and taxes aimed at reducing what is - keep the offerings as they are: don't change anything, it could be seen as a negative thing, because they are. I don't really commit to one side or the other. They don't do much to reduce PepsiCo's impact on obesity rates. This will likely draw the ire of the previously mentioned NGOs, as well as the government - focus more on the big, fun brands: ignore the other two segments and focus on PepsiCo's core products. The problem is that it may seem like PepsiCo is going back on its word and Nooyi's strategy. Additionally, PepsiCo could be considered unethical for promoting its high-sugar, high-calorie drinks and junk food as Americans and those of other nationalities face increasingly high levels of obesity. . o This would go against the current image of PepsiCo, as mentioned, at the base of PepsiCo: "it's a sugary, fatty cola company, and people like that" - focus more on the good -being: focus efforts on well-being. You, healthy alternative products. This would be considered an abandonment of the products that PepsiCo was fundamentally built on. Furthermore, despite Nooyi's best efforts, they have failed to shake their poor health image. This alternative is risky, because it could do this. be perceived by consumers as unaware of what they