Coca-ColaCompany, SWOT Analysis
Theorganization of Coca-Cola produces several brands available acrossthe world in households, shops, restaurants, and even offices. It isthe leading global manufacturer of non-alcoholic beverages. It wasestablished in Atlanta, Georgia, in the 1886, and it now operates inat least 200 countries worldwide (Hansen,2016).Therefore, this paper utilizes SWOT as a market analysis tool toexamine the internal business environment (strength and weaknesses)and the external environment (opportunities and strengths) of theCoca-Cola firm.
Theinternal business environment is made up of the strengths andweakness factors. According to Santos(2015),strengths are factors that push the company’s operation towardachieving its objectives while weaknesses are the internal factorsacting as the hindrance thus undermining the accomplishment of thepreferred targets. The main strengths and weaknesses of the Coca-ColaCorporation are as outlined below:
Hansen(2016)stated that the Coca-Cola Company has the largest brand equity due toits global uniqueness, availability, and recognition as the costliestbrand. Thus, it was given the brand equity award in 2011 by theInterbrand. Secondly, based on its valuation through brand value,various factories, and assets in different countries as well as itsoperation cost and profitability, the company is one of the mostrespected organizations (Hansenet al., 2016).Thirdly, the corporation has a universal recognition due to itsexpansion in at least 200 nations worldwide, making its productsaccessible to each and every country an individual may visit(Hassan et al., 2014).Additionally, the company has the finest marketing plans compared toother competing corporations like Pepsi. Finally, the company hasloyal users due to its strong products such as Coca Cola and Fanta(Hassanet al., 2014).
Despitethe Company’s strengths, it has weaknesses that suppress itssuccessful operations geared towards the business prosperity. Forinstance, the business experiences great rivalry from the PepsiCompany in several countriesof the world (Hansen et al., 2016).Similarly, the Pepsi Company has developed the best diversificationstrategies together with Lays and Krkure snack products, whileCoca-Cola Company still lags behind with poor and lowdiversification. Moreover, some of the Coca-Cola products arecarbonated making them relatively unfit for consumption as carbonateddrinks are high caloric diets that can result in obesity (Santoset al., 2015).
Analysisof the Internal Environment Findings and Recommendations
Fromthe above discussions, it is plausible noted that the Coca-Colaorganization has many strengths that can give it better competitiveadvantage in the market relative to its rivals. What the managementmust do to ensure that the company keeps pace with the highlyaggressive business environment is to intensify innovation so as tohave newer brands, work more on e-commerce and business expansion toattain complete globalization, and to recruit more competentmarketers and manufacturing professionals for quality production andservices. Regarding the weaknesses, the administration must adopt newcompetitive strategies of diversification and chain operations tokeep its rivals at bay.
TheExternal Business Environment
Externalfactors that impact the operations of any business are categorizedinto two namely the company opportunities and threats (Hassan,2014).The major Coca-Cola Company business environmental aspects regardingthe opportunities and threats are as detailed below:
Theseare the external factors that the company capitalizes on so as toprosper, build customers’ loyalty, and expand the market by makingtheir products more popular. First, the high concentration of thedeveloping nations enhances distribution and supply of carbonated andsoft drinks. Therefore, Coca-Cola has a chance to open morebusinesses in the emerging and growing economies to counter the highdemand of soft drinks(Hassan et al., 2014).Similarly, the Company has packed water drinking segment throughother companies like the Kinley. The company should thus expand itsbusiness operation through Kinley as a particular brand to win theconsumers` loyalty. Finally, the Company needs to fasten productmarketing regardless of the sum of money used in the launching of thecommodities (Santoset al., 2015).
Hassan(2014) argued thatclimate change is on the rise leading to water scarcity, and thatreduces the productivity of Cola Company which solely relies on wateras a major resource during the manufacturing process. Therefore,countries experiencing water problems are at high risks of facing bigdownfall in the distribution of beverages to the market, and thatleads to low revenue generation. Additionally, there are otherindirect rivalries which offer greater competition to carbonateddrinks i.e., coffee products such as the Starbucks and Costa Coffeedemands are on the rise as the drinks are not posing threats to humanhealth compared to the unhealthy, carbonated beverages(Hansen et al., 2016).
Analysisof the External Environment Findings and Recommendations
Obviously,Coca-Cola has many opportunities in the food and beverage industry.Therefore, the management should take advantage and supply thedeveloping countries with more drinks during peak seasons. Also,instead of more partnership with water companies, Coca-Cola shouldredefine its operations to include bottling of water alongside itssoft drinks to expand consumer base. Although there may be otherthreats that confront the company, the most severe one that themanagement must deal with is competition. To offset the highcompetitive pressure, Cola business must produce brands with minimalto no carbon content drinks to restore the confidence of the clientswho are diverting to other firms like the Costa Coffee due to calorichealth concerns. Besides, events such as sports should be priorityareas for the company to advertise its products and attract moreconsumers.
SWOTstudy is significant in determining and analyzing the internal andexternal setting of businesses. It outlines the weaknesses,strengths, opportunities, and threats that confront organizations.From the analyses above, it is patent for the management of Colabusiness to ensure that the business strengths and opportunities,which are actually the success drivers, are well tapped. Conversely,the barrier factors which manifest in the form of weaknesses andthreats must be eliminated through strategic management at all times.If the two consideration areas above are stressed, then Coca-Colacompetitors will have a long way to go to catch up with the businesswithin the foods and beverage sector.
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Hassan,D. N., Amos, A. A., & Abubakar, O. A. (2014). An evaluation ofmarketing strategies undertaken by Coca Cola Company as amultinational corporation in Nigeria. Journalof Business and Management, 3(2),5-10.
Santos,N., & Laczniak, G. (2015). Marketing to the poor: A SWOT analysisof the Market Construction Model for engaging impoverished marketsegments. SocialBusiness, 5(2),133.