Swot Analysis of Coca-Cola Company

Coca-Cola is the world’s biggest soft-drink company which manufactures and markets non-alcoholic drink focuses and syrups. Besides the popular Coca-Cola and Coke brands the business uses more than 500 brands in over 200 countries or areas and serves 1.6 billion servings every day. It is headquartered in Atlanta, Georgia.

Strengths

1. Coca-Cola is the world’s most valuable brand and has strong brand commitment. 2. Variety of Coca-Cola products is offered in the restaurants, shops and vending makers over 200 countries. 3. Coke is the dominant market leader of the international soft-drink market right through the 20th century.

4. Coke primarily contends on advertising and distinction and has the high market share. 5. Coca-Cola has huge circulation and production centers of non-alcoholic beverages and related items. 6. Joint endeavor with Nestle has resulted in the development of Beverage Partners Worldwide (BPW). 7. The business has strong monetary position and earnings throughout the history. Its average ROE (return on equity) for the previous five years is 37.08% whereas its ROC (return on capital) is 33.

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6%. 8. Coca-Cola has the heavy advertising and promoting activities. 9. More than 70 percent of profits comes from outside the United States. 10. Huge number of loyal customers and brand name equity all over the world.

Weaknesses

1. New coke formula causing a reaction which leads to bad image of coke. 2. The company is facing high problem of external debts for the last few years. In 2002, long-term debt of the business was 2700 million dollars. 3. Product offering is limited to beverages. 4. In November 2009, since of a dispute over wholesale rates of Coca-Cola goods, Costco blocked the replenishment of their racks with Diet plan Coke and coke.

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5. Coca-Cola has actually ceased its many products after couple of years of introducing such as New Coke, Coca-Cola with Lemon, Coca-Cola with Lime, Coca-Cola Blak, etc. which result in bad picture of the brand. 6. Coke has actually taken less aggressive market standing in today’s changing economic surroundings.

Opportunities

1. Bottled water drinking has increased 11 percent.  2. Consumers prefer to drink new smaller beverage products that are not sold on a mass scale. 3. One of the biggest opportunities is to diversify into the non-carbonated drinks such as coffee, water, juices, etc. 4. The company can offer the hygienic products due to increasing number of health conscious consumers. 5. European market and China show marvelous potential for growth. 6. The economic conditions are improving globally after economic meltdown 2007-10. 7. Diversify into complementary food products which will ultimately increase the drink consumption. 8. Coca cola should increase its partnership with fast food chains.

Threats

1. There is Low growth rate in the carbonated drinks market in North America which is the main market of Coca-Cola. 2. There is a problem with Coke to raise its prices by an edge that would permit it to keep pace with inflation. 3. Huge numbers of substitutes such as beer, water, juices, coffee etc are accessible to the end consumers. 4. Pepsi is the strong competitor which competes with advertising and differentiation. 5. Since the consumer lifestyle is changing rapidly and they are becoming more health conscious therefore there demand is shifting towards non-carbonated products such as juices, tea and bottled drinks. 6. Many smaller players are furious competitors which are also creating the competition severe. 7. The prices of raw material such as sugar and metals used in manufacturing of cans are increasing rapidly. 8. Carbonated drink revenues have been decreasing due to association of sugar to obesity and lofty fructose lump syrup to heart disease. 9. Pepsi has more diversified selling beverage and food products as compared to the Coca Cola. 10. Coca Cola is facing various regulations in respective countries around the globe.

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Swot Analysis of Coca-Cola Company. (2016, Jun 08). Retrieved from https://studymoose.com/swot-analysis-of-coca-cola-company-essay

Swot Analysis of Coca-Cola Company

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