Coca-Coca Swot Analysis
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Table of Contents1. Introduction 12. Strength 12.1 Robust Distribution Network 12.2 Extensive and diversified product portfolio 12.3 Brand Value 12.4 Advertising and marketing capabilities 13. Weaknesses 13.1 Lawsuits 13.2 High Debts 13.3 A decline in Financial Performance 14. Opportunities 14.1 New markets in developing countries 14.2 Product diversification 14.3 Cost reduction from supply chain 15. Threats 15.1 Competition 15.2 Water Scarcity 15.3 Nutritious Selection 15.4 Foreign Exchange Risk 16. Limitations 17. Conclusion 18. References: 11. IntroductionFounded and introduced to the world 130 years ago on May 8, 1886 in Georgia, United States of America, The Coca Cola Company has since established itself as the leading manufacturer, retailer and marketer of beverages around the world. The first brand to be introduced by the company was the flagship Coca-Cola which was initially introduced to the world as a patent medicine before taking the beverage industry by storm through the marketing and business genius of businessman Asa Griggs Candler. Today, it is estimated that 1.8 billion servings of Coca-Cola are being consumed per day. The company only produces the syrup concentrate which is then sold to many different bottling companies globally. The company’s vision revolves around 6P’s which guide every aspect of the business:People: Coca Cola promotes a working environment that is not only comfortable but motivates staff to come into work daily.Portfolio: They aim to ensure that the world is provided with a selection of beverages that exceed the expectations of customers.Partners: Treat all stakeholders as partners and use the insight of all parties to improve and become the best at what they do.Planet: Ensuring that their products will be sustainable and encourage different types of ways of making their beverages environmentally friendly.Profit: Ensure that the profit goal of the company is always at a maximum and do so responsibly. Productivity: Ensure maximum productivity always, at a reliable pace. Throughout the course of this report, we will analyse the internal and external Strengths, Weaknesses, Opportunities and Threats associated with The Coca Cola Company. A SWOT analysis is normally used when a company is planning on establishing a new and improved strategy to reach goals they set for the future. The internal factors of a SWOT analysis are the company’s strengths and weaknesses and can be controlled by the company. The external factors; opportunities and threats are aspects which the company does not have much control over but by having knowledge of them, they can develop a strategy to adapt and overcome the challenges of the external market. To address these, we will be compiling all the possible factors that may affect this strategy and analyse the information collected from our research to systematically present the stages of this plan. These factors will include all characteristics, tangible and intangible, positive and negative and will ultimately emphasise The Coca Cola Company’s strengths, provide an explanation on how the company can improve the internal weaknesses within the company, give insight to available opportunities and how they can take advantage of them and finally, identify existing and potential threats and how the company can avoid them in the future.
2. StrengthWhen it comes to the strengths of The Coca Cola Company, we should think about the resources and experiences readily available within the organization, i.e. the internal factors that shape the power of the business. Some questions that will help us point out the major forces that drive Coca Cola are the following: What advantages does the brand have? What does it do better compared to the competition? What does the public see in the brand’s power? What is the unique selling proposition of the company?2.1 Robust Distribution NetworkCoca Cola owns and controls distribution and bottling operations and cooperates with an extensive network of independent distributors, bottling partners as well as wholesalers and retailers, making its beverage distribution system the largest in the industry. In that way, it makes its products accessible in more than 200 countries, reaching out to a huge number of consumers. An interesting example that shows the impact that Coca Cola has worldwide, is that it even produces specific beverages based on local consumer preferences such as in Ambasa in Japan and South Korea or Andina Hi C fruit juice in Chile (Progressive Digital Media, 2016). Beverages licensed to or owned by Coca Cola account for approximately 1.9 billion out of 57 billion servings of all types of beverages consumed worldwide on a daily basis (Annual Report, 2013). This system allows Coca Cola to closely monitor costs, rapidly introduce new items into the marketplace, and dominate numerous geographic locations. Besides, its network offers superior level of quality control and safety for its goods, helping The Coca Cola company to make an impact in the market and gain the biggest part of the pie in terms of volumes, deliveries, and product introductions (Valueline, 2016). 2.2 Extensive and diversified product portfolioThe company offers a wide variety of diet and regular beverages ranging from juices, water, tea, and coffee to energy and sport drinks. The Coca-Cola Company has been solidifying its product portfolio over the years and now retains 4 of the world’s top 5 non-alcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite. No other company has as many beverage brands which annually earn at least US$1 billion, as The Coca-Cola Company (Strategic Management Insight, 2016).. Finally, as we can see from figure 1 below, in 2014 these 4 brands accounted for around 36% of the market share in carbonated soft drinks in the USA which made the company the market leader.