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Coca-Cola Swot Anaylysis

Autor:   •  March 29, 2011  •  Case Study  •  740 Words (3 Pages)  •  3,213 Views

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SWOT Analysis

Being the leading manufacturer, distributor and marketer of non-alcoholic beverages in the world, Coca-Cola has a strong brand recognition and brand portfolio. The company owns more than 400 brands, including sports drinks, teas, juices, and energy drinks. Coca-Cola operates in more than 200 countries, with 75% of profits coming from abroad (Hoover, 2009). The company ranks well ahead its closest competitor Pepsi, with brand equity of $67 billion compared to Pepsi's $13 billion. However, Coca-Cola is threatened by intense negative publicity and sluggish performance domestically.

Strengths

• Global recognition, the world's leading brand of carbonated soft drinks

• Fast growth internationally

• Strong manufacturing and distribution channel

• Consumer loyalty

Weaknesses

• Sluggish performance domestically

• Slow response to customers' evolving tastes

• High turnover rate

Opportunities

• Continuous international expansion

• Changing demographics of the US, new target markets

• Growing market for healthy drinks

• Smaller regional competitors struggling to exist

Threats

• Intense competition

• Slow growth in market for carbonated beverages

• Economic downturn influencing consumers' purchasing power

• Evolving consumer preferences

• Negative publicity

Strengths

Coca-Cola has a 90% brand recognition world-wide. The company has the leading brand value and a strong brand portfolio. The overall success allows brand extensions to achieve popularity (Cherry Coke, Coca Cola Zero, Diet Coke with Lime). Over the years, the company has invested heavily in brand promotions. In 2006, Coca-Cola spent $2.6 billion on print, radio, internet and television advertisement (TheCoca-ColaCompany.com, n.d.). Using various types of packaging (glass, plastic, aluminum cans, as well as offering different sizes) adds value to products by increasing shelf life, minimizing breakage, reducing handling and transportation costs. Coca-Cola is the first company to announce global plans to include front-of-pack energy labeling for its products, making it easier for consumers to make an informed decision, based on individual

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