SWOT Analysis for Coca Cola PDF

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Written Assignment unit 1...

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Written Assignment Unit 1 SWOT Analysis for Coca Cola

BUS 5116 Operations Management – AY2022 -T1 Sep 2021

SWOT Analysis for Coca Cola Coca cola is one of the largest nonalcoholic beverages selling company in the world (Jurevicius, 2020). It was founded on May 8, 1886 by John S. Pemberton and sold to Asa G.C which dominated the soft drink industry in 20 th century (Jurevicius, 2020). After signing its firs agreement within an independent bottling company, whereby the company is able to purchase the syrup & bottle then assembly it and proceed to distribution (britannica, n.d.). Ever since its first distribution the company has a revenue of 35.4 billion & a profit of 1.18 billion USD. Its top five nonalcoholic sparkling beverage brands are coca cola, diet coke, sprite & Fanta (Jurevicius, 2020). The method used to distribute the product has made it easily available around the world. It could be through company owned, distributors, wholesalers, & external bottling partners making it the world’s largest beverage distribution system (Jurevicius, 2020). 

What are the key strengths of the company?

The first & most significant strength of coca cola is its largest market share it has within the industry. Out of the total beverages consumed around the world it occupies 3.2% of it. Its distributions are around 200 countries with different types of non-alcoholic drinks. One of the reasons it could sustain its success is due to cheap price. Its fixed cost is divided among its other brands, therefore it maintains the affordability of the product (Jurevicius, 2020). Secondly and undeniably is its large successful portfolio. It has over 500 different types of drinks which are categorized into 7 beverages. It is clear to see that its other brands also contribute to the 21 billion USD revenue. This tells us that it has other brands that also generate a large profit

for the company, therefore the company can relay & gain earning from its other products (Jurevicius, 2020). 

What do you consider to be the most significant weaknesses of the company?

The most commonly spoken weakness of coca cola is its health concerns. Large consumption of coca cola can cause health issues like obesity & diabetes. Even so, most health experts have made their remarks around it, regardless coca cola has not provided a solution to this issue (Parker, 2020). Another weakness for coca cola is its aggressive competitors. The nonalcoholic beverage industry has become saturated because there are several alternative for soft drinks nowadays. One of its greatest competitors is Pepsi, this product has become the greatest rival of coca cola (Parker, 2020). What opportunities do you believe have the potential to evolve soon? Coca cola has a reputation when it comes to healthy drinks as mentioned earlier on its weaknesses. Conversely, Coca has a good drinking water brand such as Kinley in its portfolio. By investing more on healthy drinks, it will be able to attract this new generation’s which are aware of their consumption (Parker, 2020). By doing so Coca can further expand its market and also acquire new customers and increase its revenue & profits. In addition, similar to Pepsi, Coca cola should consider branching out of carbonated drinks and include food segments such as snacks into its portfolio (Pratap, 2021). Another opportunity for coca cola is refining the distribution structure. The product is sold around the world making it very dependent on its supply chain, logistics, transportation, and fuel costs. By taking this into consideration and improving its distribution system, a large cost

reduction can be obtained for the company. The company will gain an opportunity from this logistics improvement. What do you consider to be the threats to the company in the provided analysis? Coca cola is facing competition from other indirect competition such energy drinks, Nescafe, Starbucks and so on. These products can be an emerging threat to the company. Furthermore, coca cola has been accused of abusing water resource is scarce area. There are also rumors that coca adds pesticides to remove contaminants. Having controversial image like this can impact the brand reputation, which in turn result in being a threat for the company. Reference Britannica. (n.d.). The Coca-Cola Company | History, Products, & Facts. Encyclopedia Britannica. Retrieved September 8, 2021, from https://www.britannica.com/topic/TheCoca-Cola-Company Jurevicius, O. (2020, January 10). Coca Cola SWOT Analysis (6 Key Strengths in 2020). SM Insight. https://strategicmanagementinsight.com/swot-analyses/coca-cola-swotanalysis.html Parker, B. (2020, October 10). Coca Cola SWOT analysis 2020 | SWOT Analysis of Coca Cola. Business Strategy Hub. https://bstrategyhub.com/swot-analysis-of-coca-cola-2019-cocacola-swot-analysis/ Pratap, A. (2021, July 29). Coca Cola SWOT 2016 (Strengths and weaknesses). Notesmatic. https://notesmatic.com/coca-cola-swot-2016-strengths-and-weaknesses/...