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Coca-Cola: SWOT analysis Essay

Coca-Cola: SWOT analysis

SWOT Analysis is a special technique which was invented by Albert Humphrey as a premeditated preparation device that is used to appraise the Strengths, Weaknesses, Opportunities and Threats involved especially when a company is planning to go for a new or renew an exiting project, it involves giving out the purpose of the company’s project and recognizing the inside and peripheral factors that will affect the achievement of the intended goals. Intentional influences from the surrounding can really have a great impact on the company’s business position which finally will affect the whole company’s direction and strategies.

(Thompson, Strickland, Gamble, page 50). Background. Coca-Cola’s SWOT venture it is one of the biggest producers, distributors and marketers of refreshments of nonalcoholic beverages in the world, which deals in products like sodas, water, energy drinks, sports drinks, milk fused products, fruit drinks, coffee beverages and teas. Its headquarters is in Georgia in Atlanta though it is recognized in all the continents in the world like in India (Rajasthan) where the plant bottling is situated. (www. cokecce. com). Strengths.

The Coca-Cola enterprise has been one of the influences of the world traditions in a very long time; this is due to the fact that its

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product representation is full of schmaltzy and has greatly been taken to heart by many companies, and people world wide. Coca-Cola’s representation is always seen on T-shirts, hats and collective unforgettable memories. The greatest strengths of Coca- Cola is its widely recognized branding strategy like “Always enjoy Coca-Cola” this is a very powerful message that has always attracted people to drink more and more Coca-Cola everyday. (Allen: 1995).

The bottling system is also exclusive above almost all companies in the world (Bettman: 1998), this is because they have a standard bottling system thought the world making it easy to be recognized the products both locally and internationally. The bottling companies are owned locally and operated by independent business people given permission to sell the Coca-Cola products ,the advantage is that to get the materials for bottling locally it makes it easier to manufacture the products so as to suit the locals’ requirements, this will eventually make the Coca-Cola end products cheap for the local users.

Weaknesses. Even if domestic business as well as many international markets are flourishing especially in Latin America where were up by almost 15%, Coca-Cola has lately accounted decrease in unit case volumes in Indonesia and Thailand due to decrease in purchaser’s purchasing power. ” According to an article in Fortune magazine, “In Japan, unit case sales went down by almost 5% in the second quarter of 1998. it is really intimidating because despite the fact that Japan generates around 5% of worldwide volume, it contributes three times as much to profits. Read about Break-even Analysis at Coca-cola Company

Latin America, Southeast Asia, and Japan account for about 35% of Coke’s volume and none of these markets are performing to expectation (Mclean, 1998). This is due to the fact that most of these countries have made of clones of the same Coca-Cola products consumed locally and in other neighboring countries; this has really been a great setback for the company. Opportunities. Brand acknowledgment is the momentous feature that is affecting Coke’s aggressive position. Coca-Cola’s brand name is known well throughout 90% of the world today. The crucial concern over few years ago has been to acquire the brand name well off recognized.

The new packaging modifications have really affected sales and industry spot, though all in all people have inclined not to be affected by latest products (Allen, 1995). Coca-Cola’s bottling scheme has always let the company take a lead of immeasurable growth opportunities around the world, this is because they have allowed manufacturers to design their own bottling systems to fin the circumstances of time within that given locality, this tactic has enabled Coke to serve a great geographic, miscellaneous places (Bettman, et. al, 1998).

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