Strengths
• Diversified products with global operations; strong distribution networks
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​• Economies of scale and growth prospects
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• Flexible production & manufacturing
• Strong brand name
• CPG companies have a diverse range of products allowing a wider range of choice when pursuing opportunities with the greatest growth prospects
• Consumer products help build a developing market structure for products
• Sustainability is in the forefront of innovation leading to greener technology​
• CPG business thrive even during a bad economy
• Emerging markets provide a wide variety of opportunities for innovation
• Regulations add a barrier to entry into the market, reducing competition
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Strengths, Weakness,
Opportunities, and Threats
Weaknesses
• Sustainability is expensive and needs constant monitoring
• Consumer driven market and new innovations are exposed to higher risk
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• Diversification leads to managing several suppliers and distributors, increasing supply chain costs drastically
• Heavy dependency on suppliers and complex distribution channels
• Commodities and increase in raw materials greatly affect gross margin
• FDA regulations can be expensive to manage; product recalls damage brand name
• Fierce competition due to globalization
• Revenues centered around business in US​
•​ Overexposure to mature markets and uncertainty of regulatory impact on success of launch products
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Opportunities
• Emerging markets are a key to growth in the industry​​
• ​Continued product innovation
• Growing demand of products
• Developing nations opening up to international products
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Threats
• ​Counterfeit products
•​ Economy can slow down consumer spending
• Competition expansion through mergers and acquisitions
•​ Increasing commodity price
• Government regulations effect manufacturing, packaging and distribution.
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