SWOT Analysis of Coca Cola Company
The Coca-Cola is the world's largest beverage company, offering consumers almost 500 still and sparkling brands. Coke has the world's largest beverage distribution network; consuming in more than 200 countries enjoys the Cokes beverages at an average of nearly 1.6 billion servings a day. In 2011, Coca-cola was declared the worlds most valuable brand according to Interbrands best global brand. Most diversified range of products such as Cola-Cola Cherry, Coca-Cola Vanilla, Diet Coke, Diet Coke Caffeine-Free, Caffeine-Free Coca-Cola and range of lime or coffee and lemon. Coca-Cola has very effective advertising campaign, its advertising also represent the US culture. By sponsoring different games and teams and also featured in countless television programs and films.
Strengths:
The Coca-Cola is the world's largest beverage company, offering consumers almost 500 still and sparkling brands. Coke has the world's largest beverage distribution network; consuming in more than 200 countries enjoys the Cokes beverages at an average of nearly 1.6 billion servings a day. In 2011, Coca-cola was declared the worlds most valuable brand according to Interbrand's best global brand. Cola-Cola gets competitive advantage through the well-known global trade marks by achieving the premium prices. It means Cola-Cola have something that their competitors do not have. Coca-Cola is sold in restaurants, vending machine and stores in more than 200 countries. Coca-Cola achieve both competitive advantages, differentiation and low cost, which maintain its low cost whereas simultaneously differentiate its products. Most diversified range of products such as Cola-Cola Cherry, Coca-Cola Vanilla, Diet Coke, Diet Coke Caffeine-Free, Caffeine-Free Coca-Cola and range of lime or coffee and lemon. Coca-Cola has very effective advertising campaign, its advertising also represent the US culture. By sponsoring different games and teams and also featured in countless television programs and films. Coke and its bottlers are among the world's top purchasers of citrus juice, coffee and sugar. Coke has started to work with the International Labor Organization's International Program on the removal of Child Labor.
Weaknesses:
Coke is criticized for lofty levels of pesticides in its products, exploitative labor practices, environmental destruction, building plants in different countries those employed slave labor and monopolistic business practices. Less inventory turnover as compare to PepsiCo and product line restricted to the beverages only. By giving the distributing and bottling authorization of its own products, it results in dropping a major portion of potential revenue. Coke has been criticized for its aggressive marketing to children and suspected unfavorable health effects. Different studies has been conducted and found other drinks and Coke harmful if consumed excessively. In India Coca-Cola gaining negative publicity due to water issues, it resulted in lower growth and pitiable brand image. Lack of management enthusiasm for offering foreign products into U.S.A markets.
Opportunities:
It is highly difficult for the new entrants to enter in the soft drink industry because of some factors such as brand image and loyalty, bottling network, advertising expense, retail distribution and fear of retaliation. Coke has significant opportunities within global supply chain to encourage and develop more sustainable practices to benefit consumers, customers and suppliers. While; it is still in the premature stages of exploring these opportunities and dedicated to the economic vitality and health of the farming communities our supply chain engages. Cock Bill & Melinda Gates Foundation and nonprofit TechnoServe initiated a partnership to facilitate more than 50,000 small fruit farmers in Kenya Uganda to increase their productivity and double their incomes by 2014. Coke can diminish the fear of substitute by diversifying (related or unrelated) by offering substitute products. World population is expected to grow at 8 billion 2025, and 9.2 billion by 2050. Nearly 99% growth will take place in developing countries. Changing consumer lifestyle; by becoming health conscious and preferring substitute products. Coke can relatively diversify and offering health conscious products. Coke promotes and support sustainable agriculture not only because it makes good business sense. Focusing on its advertising and differentiation can increase its profits. Bottled water consumption in increasing day by day, 11 percent growth is reported.
Threats:
Pepsi is the major and primary rival of the Coca-Cola in the soft drink industry, Pepsi is 2nd in revenue behind the Coca-Cola, and also hit Coca-Cola in some markets. Its primary competitor PepsiCo is highly diversified by providing big range of food products. Coca-Cola also faces the tough competition from local brands in all over world such as in Central and South America Kola Real also known as Big Cola in Mexico is giving tough competition to Coca-Cola etc. Large numbers of substitutes are available in the market such as water, tea, juices coffee etc. Coca-Cola is facing different regulations and policies set by government in different countries. Low growth rate in carbonated drinks, which is recorded less than one percent in primary market of CocaCola. Changing consumer lifestyle; by becoming health conscious and preferring substitute products. Different studies has been conducted and found other drinks and Coke harmful if consumed excessively.
