SWOT analysis of Coca Cola

SWOT stands for strength, weakness, opportunities, and threats. Its a type of analysis which is used to gain competitive advantages. When you conduct SWOT analysis, you basically find out the strength of that company, the weakness of that company if there is any, you find out the opportunities for the business, and threat for the company. This SWOT will elaborate the internal and external analysis of Coca-Cola.

Coca Cola is a multinational company with many of its renowned brands it has been serving the world for long period of time. Coca cola is the largest non-alcoholic beverage company in the world serving its different type of brand for more than 100 past years. It has been serving more than 200 countries with 550 of its brands including orange juice, tea, carbonated drinks, and  sports energy drink.

Coca cola was founded by Dr Johns Pemberton in Atlanta, in the year 1886. He was also the inventor of that product. Also, Coca cola operates franchises in which coca cola sells the syrup and sold to the franchisees.

Swot Analysis of Coca Cola

Strength

1. Brand recognition allover the world: Coca cola is a renowned company. Coca cola servers in more than 200 countries with their over 550 products globally. Popularity is the most superior, and incomparable. Its very popular allover the world. People easily recognize it, and get it without any dilemma.

2. Strong Marketing & Advertisement Strategy: Coca cola has unique strategy of marketing their product. They have very talented team of marketing. The major technique they use is associating celebrities in their advertisements.

3. Strong Market Share in Beverage: Coca cola is the company that holds the largest market share of beverage industry in the whole world, and it is 40%. Its closest competitor is Pepsi.

4. Large Area of Diversified Product: Coca cola manufactures and sells products of different categories and varieties including carbonated drinks and energy drinks. All the produced drinks of coca cola are known by worldwide and  sold.

5. Customers Loyalty: Another strong advantage of Coca cola which is customer loyalty. Coca cola’s 80% profit comes from its 20% regular and loyal customers.

6. Large Sponsor: Coca cola is one of the largest sponsors in the world. They have been sponsoring international sports events like Fifa, Olimpic etc that gave them unique strategy to reach international market.

7. Strong Distribution Channel: Coca Cola has efficient and strong distribution channel by which it ensures all of its quality products reach all of its markets including Africa, Asia, Europe etc.

Weakness

1. Negative Publicity: Presence of pesticides in Coca cola harmed its brand image.

2. Absence in the Health Beverage: There drinks are not healthy. The consumer of coca cola gets obesity in long run. Societies are becoming aware of diseases result from obesity.

3. Some marketplace are dominated only by Pepsi: In those markets, Pepsi outsales coca cola. For example, in Oman and Saudi Arabia people prefer Pepsi more.

Opportunities

1. Increased Sales Possibility in Developing Nations: Tanzania, India, Bangladesh are developing nations, and in these countries the sales goes almost doubled in the summer. So, these countries will work as coca cola’s largest market opportunities.

2. Consumption Growth of Bottled Water: Hygiene becoming a major public health issue in the consumption of water. Package water has been great choice among people. Kinley is a water brand of Coca Cola. Though its not popular yet, but it has great potential in future.

Threat

1. Scarce Sources of Raw Material: The raw material of Coca cola is water. Scarcity of sources of water is at increasing rate. If this increases more, this company will face difficulties gathering raw materials at a lower price.

2. Strong Competition Among Competitors: The competition is always high in the beverage market, and increasing on locally and globally . Among other, Pepsi is the leading competitor. Besides, there are indirect competitors that provide near supplementary products. Starbucks, Caffe coffee day, other small beverage manufacturers are few of them.

swot analysis of coca cola 2014 by gotabout

Coca Cola Drinks


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faizul

Sheikh Faizul Haque, the founder of GotAbout, graduated from North South University, Bangladesh. His major was Finance and Accounting. Faizul has been writing in business blogs since 2013, also has a strong interest in Behavioral Finance, Risk Management, and Portfolio Management.