Coca Cola SWOT Analysis

coca-cola-swot-analysisThe Coca-Cola Company is currently the world’s largest beverage company. They either own or license more than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages such as waters, juice drinks, ready-to-drink teas and coffees, and energy drinks. Coca-Cola own and market four of the world’s top five nonalcoholic sparkling beverage brands including the infamous Coca-Cola, Diet Coke, Fanta and Sprite. Beverage products bearing their trademarks have been sold in the United States since 1886 and are now sold in more than 200 countries.

Coca Cola SWOT Analysis

Strengths:

  • The biggest global brand in the world in terms of value ($202 billion enterprise)
  • The world’s largest market share in beverage
  • Strong marketing and advertising
  • The most extensive beverage distribution channel
  • Exceptional customer loyalty
  • Bargaining power over their suppliers
  • Corporate social responsibility (or CSR)

Weaknesses:

  • A significant focus on carbonated drinks
  • Undiversified product portfolio
  • A growing high debt level due to acquisitions
  • Much negative publicity
  • Brand failures or many brands with insignificant amount of revenues

Threats:

  • Continuous changes in consumer preferences
  • The scarcity of water
  • Strong dollar
  • Saturated carbonated drinks market
  • Legal requirements to disclose negative information on product labels
  • Decreasing gross profit and net profit margins
  • Competition from their biggest competitor, PepsiCo

Opportunities:

  • The global growth of bottled water consumption
  • An increasing demand for healthy beverages (and food)
  • Growing beverages consumption in emerging markets (including BRIC)
  • Growth through acquisitions

Leave a Reply

Your email address will not be published. Required fields are marked *