This SWOT analysis delves into the strengths, weaknesses, opportunities, and threats faced by Coca Cola. It highlights the company's market position, product range, competition, and potential growth areas.
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SWOT ANALYSIS
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INTRODUCTION In any business, there are some strengths that help in driving towards the goals and objectives while there are some weaknesses also on which a company has to focus on and implement better techniques to overcome from those shortcomings. These two are the major factors that create opportunities and threats for the business operations and the overall company. For understanding this more clearly, SWOT analysis of Coca Cola company is performed below. SWOT ANALYSIS This is one of the best strategic management tools that help in analysing the strengths and weaknesses of an organization with its market threats and opportunities for the business. Figure1: SWOT Analysis Source: [https://lencred.com/blog/swot-analysis/] STRENGTHS ο·A diverse range of products and market share- Being one of the most popular organizations with a diverse range of products makes its biggest strength to successfully operate the business in the markets. Company has one of the biggest shares of the beverage market all over the world with the products like Coca-Cola, Fanta, Sprite, 2
Schweppes, Simply, Smart water, etc. which are very popular among all the sectors of the community ο·Valuation of the organizationβ one of the top business organization in the world with the gross value of around 79 billion US dollars. This includes the assets of the company, factories, operations cost and profit of the last financial year ο·Marketing strategiesβ company always focused on winning the hearts of people with their advertisement and marketing strategies. Since the company have the target people of all the ages, they use many platforms to reach their people effectively ο·Customer loyaltyβ this is one of the most important advantages of the organization whichispossibleduethestrongproductrange,effectivelyplannedstrategies, relationships with people etc. Since the organization is operating from around 130 years, the management knows the power of this aspect for their business ο·Distribution networkβ company has a very strong production and distribution supply chain which enables it to reach all the locations of the globe. For this, the organization implementsmanystrategiesandlatesttechnologywhichgaveitacompetitive advantage. WEAKNESSES ο·Absence of healthy beveragesβ at present if the eating and drinking habits of people, they are more focused on only healthy food and with this perception of people one of the major weakness of Coca-Cola emerges because of the absence of these type of products ο·Water managementβ currently company is facing some major issues with the use of water and there are many lawsuits filed on the organization on using access water for their production which should be distributed to the local people first. For this, the company is retreating water and using it again which is beneficial for the company. ο·Competition from brands like Pepsiβ this comes in the major weakness of the organization, because of this company has to invest huge amounts on marketing and promotionalactivitiestoretainitscustomerswhichshouldbeimplementedon strategies to expand the business in new places 3
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ο·Indirect competitionβ from the local brands, fast food chains, desire of people to have something new creates shortcomings for the organization, generally on which Coca-cola is not much focused. ο·Low presence in the supermarket chainsβ today, the market share of the company is quite low in comparison to its biggest competitor Pepsi. OPPORTUNITIES ο·Diversificationβintheworldofchangingdemandsregular,Coca-Colahasthe opportunity to build a new market for healthier products and services. This practice will eliminate its one of the major weakness and create more opportunities for future ο·Developing nationsβ with the emergence of the healthy drinks in the daily drinking habits, the company have an opportunity to develop countries with its new products range. Wider the range of products more the opportunities ο·Improvement in the supply chain managementβ for creating more opportunities in the present and new markets improvement in distribution networks and the overall management is one of the basic need for the company ο·Packaged drinking water-people of the developing countries like India, China, and many middle eastern countries the need of safe hygienic water is one of the major need and for which the company can marketize its packaged drinking water and new technologies to make it safer ο·Increasing the market share in supermarket chainsβ removing the weakness of the organization creates new opportunities and this is one of the fields that is included in this. Creating more share in the markets will definitely help in reaching more people which eventually generate more revenue for the company THREATS ο·Raw material sourcingβ one of the major threat to the company is the sourcing of its major raw material; water. In many countries the company faces problem in the access of water, because it is limited and for the production processes governments impose lots of taxes 4
ο·Presence of Pepsiβ for Coca-Cola, its major competitor is Pepsi which is present in almost all the business environments where Coca-cola operates. Due to this, there are many cases of decrease in the sales and revenue of the company ο·Indirect competitorsβ small business in the local markets, other fast food chains like Pizza Hut, Star Bucks, etc. account for a big proportion of challenges in the markets. ο·Increased cost of labours and raw materialβ movement of people from carbonated drinks to healthier drinks is a major challenging threat to the company which is increasing constantly ο·Competition in the marketsβ in the business markets the Coca-Cola faces very tough competition from its competitors in many business operations which are almost same in all companies. Whenever some other company implements any new strategy, discount, etc. Coca-Cola also has to implement some new strategy to win the attraction of people. CONCLUSION After analysing the factors involved in the SWOT analysis, it can be concluded that the company is working well with its diverse range of products but because of the change of perception of people towards the carbonated drinks, increase in the costings of labour and biggest threat in the market i.e., Pepsi, company has to discover some new and healthier products and again win the hearts of people all over the world. 5
REFERENCES https://www.statista.com/statistics/326065/coca-cola-brand-value/ https://www.strategicmanagementinsight.com/swot-analyses/coca-cola-swot-analysis.html http://www.valueline.com/Stocks/Highlights/The_Coca- Cola_Company__A_Short_SWOT_Analysis.aspx#.Wl3yXaiWZPZ https://businessteacher.org.uk/swot/coca-cola.php OβConnor, A. (2015). Coca-Cola funds scientists who shift blame for obesity away from bad diets. New York Times, 9. http://www.coca-cola.com/global/ 6