unit IV MINI PROJECT
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UnitII-MBA.docxUnit II Mini Project 1
COCA-COLA SWOT 5
Michelle Evans
MBA 5101
November 20, 2017
SWOT
This is an acronym for company’s internal strengths and weakness and the various environmental opportunities and Threats facing the same company. The SWOT analysis is a popularly used technique used by managers and board of directors to determine the companies or corporate strategic position in the various market. This concept is based on the operational assumption that effective strategies are developed from company internal resources which include the strengths and weakness and the external factors which comprise of the threats and opportunities. A good balance normally increases the company strengths and opportunities and reduces the threats and weakness.
Coca-Cola Company
The Coca-Cola Company is the leading manufacturer, marketer, and distributor of many brands of soft drinks in the world. This company has well-established brand name and portfolio. In 2007, this company was ranked top globally in brand loyalty and in the same year Business week-Interbrand recognized Coca-Cola brand at $65, 324 million (The Coca Cola Company, 2012). This strong brand facilitates the brand loyalty and increases the ease of penetrating the markets. However, the Coca-Cola Company is threatened by intense competition which have negatively impacted on the company market share. The company very many brands which are sold in over 200 countries. Some of these brands are marketed locally due to cultural constraints while other are advertised and sold in specific area round the globe. The most famous brand for the company is the Coca-Cola Classic Brand which is known for its red and white colors and original formula. Other brands include Dasani water, Bacardi, Sprite, Odwalla, Minute Maid Orange juice and PowerAde.
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STRENGTHS 1. International: Coca-Cola Company is present in more than 200 countries around the globe. It is argued that the company products are in every country. With this expansive market penetration the brand is so recognized and this translates to higher sales 2. Brand equity: back in 2011, the company was recognized as one among many companies with the highest equity. This is attributed to high distribution rates 3. Customer loyalty: for more than 100 years in the beverage industry, this company has been part of world’s brand. The loyalty is based on products line and promotions. 4. Brand: this is undeniable the greatest strength of the company. The company popularity has enabled it to have superior strength. It is believed that people take the beverage, not because of taste but to be part of something popular.
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WEAKNESSES 1. In 2017, the company has been in a state of restructuring. This has caused unpredictability of the business stability and reduction in sales 2. Around the world, many restaurants have been served by the Coca-Cola. Currently this trend is changing as these joints are terminating their contracts with the company in favor of Pepsi. For instance Woolworths has refused to stalk Coke zero sugar drink and Dominos Australia has increased tied with Pepsi (Devlin & Davis, 2017). This has affected the company revenue 3. The biggest weakness experience by this company is the public attitude towards the drink. Many people believe the products are unhealthy and lead to disease such as diabetes if used frequently and in high quantities
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OPPORTUNITIES 1. Recently this company has shown it is growth-oriented and it has the ability to innovate its products depending on customers demand and preference. The company renovation has seen its revenue growth and the new brands Coca-Cola Zero Sugar and Innocent smoothies brand launched in Europe are will make the Coke Brand maintain competitive advantage (Coca-Cola, 2016). 2. The Coca-Cola Company is taking an early initiative to make its products more sustainable in the dynamic business. This approach of focusing on the circular economy make the company relevant. 3. The company has of recent venture in bottle-water brand, this is a real opportunity as there is growing need for the products in conferences, long distance travels and during sporting activities |
THREATS 1. As the company is striving to improve the sustainability of its products by recycling, critics argue that the plastic bottles from the company are wash up in many beaches around the world. Consumers feel that the company is trying to cover-up its insensitivity to the environment (Sauven, 2017). 2. As the Coca-Cola Company continue to expand its brand, Pepsi which is the company main competitor are increasingly developing ecommerce presence which is a divergent strategy and may be more received in the market create market dominance (Gee, 2017). 3. There is a low growth rate of carbonated drinks especially in North America (Bedard, 2017). This negatively impact of target market and eat on company revenue 4. The competition in market is greatly influencing the company dominance. People are developing a health-conscious attitude and this could have severe effects on the brand.
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Conclusion
Coca-Cola Company has invested a lot of resources to see its brand penetrate the market and become the leader in the soda industry. The company is well established in more than 200 nations and its products are almost in every country. The company innovation and dominance are, however, facing stiff challenge from Pepsi Company which has diversified its product line. Additionally, the growing concern about the health effects of carbonated drinks put the company at risk of losing market in some region like in the case of North America.
References
Bedard, P. (2017). Obesity becomes the worldwide epidemic, US is the fattest. Retrieved November 9, 2017, from http://www.washingtonexaminer.com/obesity-becomes-worldwide-epidemic-us-is-the-fattest/article/2629712 Coca-Cola. (2016). Who we are- infographic. Retrieved November 9, 2017, from http://www.coca-colacompany.com/careers/who-we-are-infographic Devlin, P., & Davis, A. (2017). Dominos ditches Coca-Cola for rivals Pepsi- a day after Woolworths refused to Stock Coke's new sugar-free drink. Retrieved November 9, 2017, from http://www.dailymail.co.uk/news/article-4673604/Dominos-ditches-Coca-Cola-Australia.html Gee, R. (2017). Pepsi sees 'infinite possibilities' in ecommerce. Retrieved November 9, 2017, from Marketing Week: https://www.marketingweek.com/2017/07/11/pepsi-to-prioritise-premium-products/ Sauven, J. (2017). If you care so much, Coke, why aren't your bottles 100% recycled? Retrieved November 9, 2017, from The Guardian: https://www.theguardian.com/sustainable-business/2017/jul/13/coca-cola-plastics-pollution-oceans-bottles-packaging-recycling-pr-fizz-greenpeace-john-sauven The Coca-Cola Company. (2012). Retrieved November 9, 2017, from http://us.coca-cola.com/
