Coca Cola SWOT Analysis Case Study

Swot analysis is a strategic planning technique adopted by an organization to figure out its strengths, weaknesses, threats and opportunities. Companies often conduct SWOT analysis to identify the defaults in their business strategy. Coca cola is a highly popular global brand known for its non-alcoholic carbonated drinks. It has a highly diverse beverage portfolio that is the largest in world in the category of non-alcoholic beverages. Our assignment experts are presenting a case study on Coca cola SWOT analysis. Strengths

  1. Coca cola has very high brand equity. It has more than 500 beverage brands that mark its presence in about 200 countries of the world. It owns four out of five top selling non-alcoholic beverage brands.
  2. It is one of the top valued companies in the world. Its valuation includes brand value, production units, operation costs and revenues
  3. It has the largest market share in its segment. Pepsi is the only rival of coca cola that is still far behind in terms of global reach.
  4. Its marketing strategy is one of the best as it targets people from all age groups. The advertisements are done by top celebrities making it an immediate hit in the market.
  5. Coca cola enjoys high customer loyalty. Its fantastic taste spread across several brands binds the customers forever.
  6. Its distribution network spans across numerous countries making it possible to launch new products easily at the target place.

  Weaknesses

  1. Carbonated drinks are facing criticism in developed countries owing to their role in increasing obesity. People are shifting to other healthy substitutes, which might result in a decline in sales.
  2. Pepsi is a strong opponent and is striving hard for top position. It has diversified in the snacks segment with products like Lays and Kurkure. Absence of Coca cola in this division will make the job easier for Pepsi.
  3. Coca cola is facing a number of lawsuits because of its water consumption. Its plants have depleted the water resources even in the water scarce regions. Therefore, water management is an issue that needs to be checked.

  Opportunities

  1. Since developed nations are showing a decline in sales of carbonated drinks, developing nations are still great markets particularly those with warm climate. Serving carbonated beverages is still considered a luxury there. Coca cola can generate great revenues from such places.
  2. With its established brand name, Coca cola can capitalize from diversification in the food, health and snacks business. They can utilize their existing supply chain to sell these products generating great revenues.
  3. Coca cola needs to focus on its less selling products. As it is spending a lot on the manufacturing, it should put more effort on marketing and promotion of these beverages.
  4. Packaged drinking water is a great opportunity to focus on. Although Coca cola is already selling it under the brand Kinley, it needs to work on marketing to make it as popular as Bisleri.
  5. Coca cola relies heavily on transportation as a part of its supply chain. It needs to take further measures in reducing the costs involved in distribution and transportation.

Threats

  1. Depletion of water resources in several production regions is a major threat to Coca cola. It can suffer a major setback if its production is banned in some countries owing to water scarcity.
  2. With an increase in the number of energy drinks, coffee chains and health drinks, Coca cola is gradually losing market.

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