SWOT analysis of Coca Cola Final (conflicted copy 2020-09-29 112951) PDF

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MT140 - Unit 2 Assignment

SWOT Analysis for Coca-Cola

Kelly E. Davis Purdue Global University MT140: Introduction to Management Dr. Boyer September 29, 2020

MT140 - Unit 2 Assignment

COMPANY OVERVIEW A SWOT analysis is an excellent tool to identify a company's strengths, weaknesses, opportunities, and threats while developing a strategic plan. By performing the SWOT analysis for a large company such as Coca-Cola, we will determine whether the business can continue to grow and remain successful. The Coca-Cola Company is one of the largest beverage manufacturers in the world. Headquartered in Atlanta, GA, The Company has been in business for over 133 years and has a 500 different beverage brands portfolio. Some of those brands include the top 5 soft drinks, Coca-Cola, Diet Coke, Fanta, and Sprite. (Coca-Cola, n.d.) In addition to soft drinks, Cola-Cola also markets water, juice drinks, sports drinks, dairy beverages, and ready-to-drink teas and coffees. Other top brands include Minute Maid, Powerade, Dasani, Honest Tea, and Vitaminwater. With the world's most extensive distribution system, Coca-Cola reaches thirsty consumers in more than 200 countries. Nearly 65% of its sales come from outside the US. FACTS Head Office

1 Coca-Cola Plz NW

Web Address Revenue/Turnover (USD) Finacial Year End Employees NYSE Ticker

Atlanta, GA 30313 USA https://www.coca-colacompany.com $37.27 Billion December 61,800 (CSIMarket. (n.d.)) KO

SWOT ANALYSIS STRENGTHS

WEAKNESSES

MT140 - Unit 2 Assignment

Brand Awareness

Declined Revenue

Global Presence

Water Management

OPPORTUNITIES Increased Marketing

THREATS Increased Competition

Product Diversification

Indirect Competition

Strengths Brand Awareness: By upholding the title of being one of the top two beverage companies globally, Coca-Cola takes its brand to another level. Its signature logo, jingle, and mascot resonate with people of all races, genders, and ages. Global Presence: Coca-Cola has its products made available to over 200 countries worldwide. With such market power over its competitors, the company can sell at a lower price than its competitors. Due to its vast distribution network, Coca-Cola can provide its products to its customers on a much larger scale. According to the company's website, they serve approximately 1.9 billion in servings a day. (Coca-Cola, n.d)

Weaknesses Declined Revenue: Coca-Cola has been in business for 133 years and still top in its industry; during the past few years, The Pepsi Company has increased its revenue and income a bit more. Many factors are to blame for the decrease in revenue, such as increasing competition and increasing healthy living.

MT140 - Unit 2 Assignment

Water Management: How Coca-Cola managed its waste has become a contention topic with the soft drink giant. Coca-Cola was accused of dumping toxic waste into India's Ganges River. They were also charged with lowering the water levels significantly, leaving little water for farmers and animals. (MarketLine Company Profile, 2020)

Opportunities Increased Marketing: People become more health-conscious every day and watch what foods or drinks they are consuming. As healthy living has become more of a lifestyle change, Coca-Cola reacted by expanding its product lines by including Truvia in its beverage products. By Coca-Cola marketing healthier brands, they could increase their overall revenue. Product Diversification: Coca-Cola's direct competitor, The Pepsi Company, has expanded its product diversity. Pepsi has affiliated itself with other brands in the snack market and has been successful. Coca-Cola can increase their share by crossing over to the snack foods market. (Wei, J. 2013)

Threats Increased Competition: Over the years, Coca-Cola has had several competitors, the largest being The Pepsi Company. Coke and Pepsi had been rivals since the beginning of Pepsi's entrance into the market in 1893. Each company has extensive product portfolios, and each has

MT140 - Unit 2 Assignment

its similarity to one of the other brands. Coca-Cola markets itself as a world leader in its market that caters to people worldwide. Indirect competition: In addition to Pepsi, Coca-Cola has many indirect competitors. An example of such a competitor is Starbucks. Although it does not sell soda, Starbucks and other companies sell other beverages that some may prefer over soda. Starbucks could affect the financial aspect of the company. (MarketLine Company Profile, 2020)

MT140 - Unit 2 Assignment References

Coca-Cola. (n.d.). Our Company: Mission, Vision, & Values. The Coca-Cola Company. https://www.coca-colacompany.com/our-company/mission-vision-values The Coca-Cola Company. (2020). Fort Mill: Mergent. https://libauth.purdueglobal.edu/login? url=https://www.proquest.com/docview/1860750941?accountid=34544 MarketLine Company Profile: The Coca-Cola Co. (2020). MarketLine, a Progressive Digital Media business. https://libauth.purdueglobal.edu/login?url=https://search-ebscohostcom.libauth.purdueglobal.edu/login.aspx? direct=true&db=bth&AN=144620620&site=eds-live Wei, J. (2013). Coca-Cola Should Consider Offering Snacks To Increase Beverage Sales. http://seekingalpha.com/article/1593172-coca-cola-should-consider-offering-snacks-toincrease-beverage-sales...