Mini project on Coca Cola

SWOT Analysis

Karen Hughes

Columbia Southern University

Coca-Cola is a leading producer and distributor in the global soft drinks industry. Headquartered in Georgia, Coca-Cola is a publicly listed firm at the New York Stock Exchange. James Quincey is the chairman and chief executive, while Brian Smith serves as the president. The company manufactures carbonated, non-alcoholic beverages, water, and concentrates. The industry is profitable, although competition among the leading players is intense. The beverage manufacture has taken a defensive approach by the company disagreeing with the notion that sweetened beverages cause lifestyle conditions. Coca Cola needs to identify better and sustainable strategies that will address the competitive pressures, changing consumer preferences and development of healthier product offerings.

Strengths	Weaknesses
· Strong brand and market dominance · Elaborate marketing strategies · Effective franchise model · Customer loyalty	· Reliance on bottlers · Dependence on non-alcoholic drinks only · Negative publicity
Opportunities	Threats
· Growth through acquisition · Increased demand for healthy drinks · Increased consumption of beverages in the emerging markets	· Increased competition · Changing consumer preferences · Scarce resources

Coca-Cola has numerous strengths that have been crucial in driving its business plan over the years. It is also critical for the firm to devise ways to enhance customer loyalty in the wake of increased demand for healthier choices (Sharman, Larkin, Fernandez, & Esteves, 2019). The beverage giant has a strong brand presence in the entire world. The company engages in intensive marketing campaigns that help in creating awareness about product offerings. Also, the useful franchise model has worked perfectly in the overall performance of the organization. The model supports local businesses in a way that enhances consumer loyalty. The company has substantial financial capital to assist in meeting the financial obligations and commitments.

On weaknesses, Coca Cola faces competition from Cadbury Schweppes and other firms in their countries of operation. It encounters challenges in maintaining its market share due to the high demand for healthier choices (Sharman, Larkin, Fernandez, & Esteves, 2019). Consumer interest has changed over time, making soda sales reduce, especially in the established markets in Europe and North America. Coca-Cola is experiencing high operational costs as it moves towards reformulating its manufacturing processes and strategies. The firm has undertaken close to reformulate close to 200 works as it reduces sugar levels in the existing products. Shops in countries such as the UK and the United States have products such as Fanta and Sprite that have a sugar content of less than 30 percent.

There exist opportunities in the emerging markets and the acquisition of small companies (Banks, 2016). With the reduction of soda sales in some regions, Coca-Cola is anxious to save this business segment. Interestingly, there is a significant rise in the consumption of bottled water and coffee. The chief executive recently reported that the company had created a long-term strategy to address the declining soda sector. There is a multi-pronged strategy that involves new recipes, revamped marketing strategy, and bottling. The aim is to ensure a healthier future for coke. The new recipe details the production of new and healthier sparkling beverages such as Coke Life. The company has been seeking to attend to the changing tastes and preferences by offering unique and healthier choices. The company should add more options to its portfolio as it places greater emphasis on innovation efforts. The healthier options mirror the trends in consumer interest around the world. The move is vital to respond to changes in stakeholder and consumer landscape (Banks, 2016). The desire for fewer calories and sugar in drinks is on the increase.

Moreover, Coca-Cola's new brands and acquisitions concentrate more on non-soda beverages such as iced tea. The increased production of sparkling drinks reflects that Coca-Cola is moving to all-natural ingredients in the future. The firm can also modify the recipes of the current brands.

Threats emerging from competitors such as PepsiCo cannot be ignored as they pose risks in the established markets. Water scarcity is a significant threat in the operations of the company as it is a vital ingredient. The company has to invest in initiatives that ensure water availability through conservation and recycling (Sharman, Larkin, Fernandez, & Esteves, 2019). Also, changing consumer preferences threaten the survival of the business in the coming years. Therefore, Coca Cola must invest in research and innovation to help develop products that satisfy the clients’ needs and preferences.

In summary, Coca-Cola has to get healthier to reverse trends on reduced soda sales. The strategy in the soft drink business is to reduce calories and sugar content in the products. Through SWOT analysis, the company can explore ways to ensure business sustainability. Innovation on new and healthy products is essential to assist in producing beverages that meet the clients' healthy choices and needs. It is prudent to refocus its energies on the core business model. Being a leading creator of beverage brands, Coca-Cola should expand its portfolio to increase healthy brands. Coca-Cola stands a better chance to revamp its strategies in a manner that ensure business sustainability. Sustainable business approaches will enhance stronger and leaner ongoing actions that stand the test of time.

References

Banks, H. (2016). The business of peace: Coca-Cola's contribution to stability, growth, and optimism. Business Horizons, 59(5), 455-461.

Sharman, A., Larkin, J., Fernandez, I., & Esteves, G. (2019). The Diversification of Coca-Cola: Globalization & Strategic Fit. Journal for Global Business and Community, 10(1).