SWOT of Coca Cola
Uploaded by
ScribdTranslationsSWOT of Coca Cola
Uploaded by
ScribdTranslationsSWOT da Coca Cola
Forces Weaknesses
The best global brand in the world in Significant focus on beverages
terms of value ($ 77.839 billion) carbonated
2. Largest market share in the world of 2. The product portfolio does not
drink diversified
3. Strong in marketing and advertising High level of debt due to
4. Largest beverage distribution channel acquisitions
5. Customer loyalty Negative advertising
6. Bargaining power over the 5. Failure marks or many brands with
suppliers insignificant amount of revenue
7. Corporate social responsibility
Opportunities Threats
1. Growth of water consumption 1. Changes in preferences of
bottled consumers
2. Increase in demand for food and 2. The scarcity of water
healthy drinks The American dollar is strong.
3. The increasing consumption of beverages in 4. The legal requirements for disclosure
emerging markets (especially negative information on the labels of
BRICS products
4. Growth through acquisitions 5. The decrease in profit margins and
gross net profit
6. PepsiCo Competition
7. Saturated beverage market
carbonated
Forces:
1. The best global brand in the world in terms of value ($77.839 billion):
According to Interbrand, Coca-Cola's company is the most valuable brand in
world ($77.839 billion).
2. Largest market share in the world of beverage:
Coca Cola holds the largest market share of beverages in the world (about 40%).
3. Strength in marketing and advertising:
Coca-Cola's advertising expenses accounted for over $3 billion.
in 2012 and increased the company's sales and brand recognition.
4. Largest beverage distribution channel:
Coca Cola serves more than 200 countries and over 1.7 billion drinks per day.
5. Customer loyalty:
The company values having one of the most loyal consumer groups.
6. Bargaining power over suppliers:
The Coca-Cola company is the largest beverage producer in the world and wields power.
significant about your suppliers to receive the lowest available price from
of them.
7. Corporate social responsibility (CSR):
Coca Cola is increasingly focused on CSR programs, such as the
recycling/packaging, energy conservation/climate change, healthy living
active, water management and many others, which increases the social image of the company and
results in a competitive advantage over competitors.
Weaknesses:
Significant focus on carbonated beverages:
The business is still focused on selling Coca-Cola, Fanta, Sprite, and others.
carbonated drinks. This strategy works in the short term, the consumption of drinks
carbonated drinks will grow in emerging economies, but it will weaken, because the
the world is fighting against obesity and is moving towards consumption of
healthier foods and beverages.
2. The non-diversified product portfolio:
Unlike the competitors of larger companies, Coca-Cola is still
focusing solely on selling carbonated drinks, which puts the company in
disadvantaged situation. The total consumption of soft drinks is stagnant and the company
Coca Cola will have difficulty entering other markets that sell food or
snacks, when he will have to sustain the current level of growth.
High level of debt due to acquisitions:
Nearly $8 billion in debt acquired from CCE (Coca Cola Enterprise in
Increased significantly the level of debt of Coca Cola, the interest rates and
costs of loans.
4. Negative advertising:
The company is often criticized for high water consumption in regions with scarcity.
of water and the use of harmful ingredients to produce their drinks.
5. Failures mark or many brands with insignificant amounts of revenue:
Coca Cola currently sells more than 500 brands, but only a few of the brands
resulting in over $1 billion in sales. Furthermore, the company achieved little
success in introducing new beverages to the market, for example the brand C2 drink.
Opportunities:
Growth of bottled water consumption:
The consumption of bottled water is expected to grow as much as in the USA and the rest of
world.
2. Increased demand for healthy food and beverages:
Due to many programs to combat obesity, the demand for food
healthy foods and beverages has increased drastically. The Coca-Cola company has the
opportunity to further expand your product range with low drinks
amount of sugar and calories.
3. The growing consumption of beverages in emerging markets (especially BRICS):
The consumption of soft drinks is still growing significantly in the markets
emerging, especially the BRICS countries, where Coca-Cola can increase and
maintain your market share of beverages.
4. Growth through acquisitions:
Coca-Cola will have difficulty maintaining its current growth levels and will encounter
the difficulty of entering new markets with your existing product portfolio. Everything
this can be done more easily through the acquisition of other companies.
Threats:
Changes in consumer preferences:
Consumers worldwide have become more health-conscious and are
by reducing your consumption of soft drinks, beverages that have large quantities of
sugar, calories and fat.
2. The scarcity of water:
Water is becoming increasingly scarce worldwide and is rising both in cost and in critical importance.
for Coca Cola throughout the large quantities of water used in production.
The American dollar is strong:
More than 60% of Coca Cola's profits come from outside the US. Due to the strong
performance of the dollar against other currencies, the global yield of the company may
fall.
4. The legal requirements for disclosing negative information on product labels:
Some carbonated drinks from Coca Cola have adverse health consequences.
For this reason, many governments are considering passing legislation that requires disclosure.
the information on product labels. The products that contain this information
they can be perceived negatively and lose their customers.
5. The decrease in profit margins and gross net profit:
Coca-Cola's gross profit and net profit margin have been decreasing over time.
In recent years and may continue to decrease due to the rise in water and other costs
of raw materials.
6. PepsiCo Competition:
PepsiCo fiercely competes with Coca-Cola for market share in
countries of the BRICS, especially in India.
7. Saturated carbonated drinks market:
The business significantly depends on the sales of carbonated beverages, which is
a threat to Coca-Cola, since the consumption of these beverages is not growing and
it can even be said that it is in decline in the world.