Coca-Cola SWOT Analysis: Secrets to Global Success

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Company Details

CEO:	James Quincey (May 1, 2017–)
Headquarters:	Atlanta, Georgia, United States
Founder:	Asa Griggs Candler
Founded:	May 8, 1886, Atlanta, Georgia, United States
Revenue:	37.27 billion USD (2019)
Owners:	The Vanguard Group, Berkshire Hathaway, BlackRock
Subsidiaries:	Coca-Cola (Japan) Company, Limited,…

It is easy to describe a multinational company such as Coca-Cola by simply stating that it is the market leader in the beverage industry. Since 1886, the year it was founded in Atlanta GA, Coca-Cola has kept on finding new markets and lovers across the globe.

Today, it is considered to be one of the most profitable and recognizable brands. Some estimates put the number of Coca-Cola carbonated beverages that are consumed every second to be 10,000 which is a testament to the company’s larger-than-life following.

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SWOT Analysis of Coca Cola

A SWOT Analysis is a study of a company or a business through which researchers find some of the most influential internal and external factors. Internal factors include strengths and weaknesses that a business could be facing that are in its control. In contrast to this, external factors act or react to a business from the outside, including opportunities and threats.

SWOT Analysis is presented in a square with four quadrants. Each quadrant contains a description of these factors.

Before we move on to the SWOT Analysis of Coca-Cola in a tabular form, let’s explore all these in detail before putting them in a table.

Coca Cola Internal Factors

The internal strategic factors that Coca-Cola might be facing are its strengths and weaknesses. Let’s start with the former before we take a critical look at the latter.

💪 Strengths

The strengths of Coca-Cola, the comparative advantages, it is enjoying over its competitors are as follows.

Brand Identity

Coca-Cola has never had to struggle for its soft drinks to get brand identity and recognition. From day one, it is among the most easily recognizable brands in history. Much of it is owed to its iconic logo and bottle shape.

High Brand Value

According to reliable sources, Coca-Cola is among the most valuable brands in the world. The brand value ranges around $57 Billion putting it at the number 6 behind only Apple, Amazon, Microsoft, Google, and Samsung.

Global Market Player

Where other brands struggle to connect with different demographics and lifestyles, Coca-Cola has already conquered them. It is the best-selling soft drink brand that adorns social and personal events with over 500 new products.

The Coca-Cola products are served in more than 200 countries with an estimated 1.9 billion servings per day.

Loyal Customer Base

Customers have always flocked around their favorite brands and Coca-Cola is a leader among those. In the US and abroad, it has the most sentimentally attached loyal customer base. The brand is synonymous with happiness, whereas its special product, Fanta is about being mischievous and naughty.

Lion’s Share in Market

Coca-Cola has the lion’s share in the market when compared to its competitor, Pepsi. Its diverse range of products including Fanta, Sprite, Diet Coke, Minute Maid, and Maaza, are some of the best-selling items in their niche.

Exceptional Distribution & Supply Chain

With over 220 bottling partners and 900 bottling plants, the supply chain and distribution network of Coca-Cola Company distributes beloved products to beloved customers with efficiency and high reach.

A string of Acquisitions

Coca-Cola has started acquiring other micro-brands to enhance its ready-to-drink portfolio. The new and most important names in this category include Costa Coffee, Fairlife, Fuze Tea, etc.

Re-Imagined Portfolio

One of the strengths of the Coca-Cola company is its strong decision-making. Recently, it has decided to reduce its brands globally, from 400 to 200 in numbers, all bundled under 5 major categories, such as Coca-Cola, Sparking Flavors, Emerging, and so on.

🤒 Weaknesses

All great things aside, Coca-Cola faces a lot of inherent shortcomings internally that must be addressed.

Competition, legal issues, and health concerns are some of the things that are clouding Coca-Cola to operate at an optimum level.

Tug-of-War with Pepsi

Pepsi always gives a hard time to Coca-Cola through product diversification and pricing, including snack items like Lays, Kurkure, etc. This is one of the closest competitors of Coca-Cola without any doubt.

Health & Wellbeing Concerns

Sugar intake is one of the biggest health concerns in the modern world. Since carbonated drinks are essentially sugar and water, Coca-Cola faces a lot of criticism as the largest player in this market segment.

Unfortunately, it has yet to develop alternative methods or products to re-invent its product line.

Legal Issues

On top of all other brushes with the law, Coca-Cola is facing a patent infringement lawsuit that would recognize users and customers and customized their drinks according to their specifications.

Crucial Dependence on Suppliers

Despite its size and resources, Coca-Cola has not devised a business software of its own. Instead, it has always relied on third parties to provide crucial business software and virtual support, such as Microsoft.

Environmental Concerns

Coca-Cola has been repeatedly accused by groups of its single-use throw-away bottles. In many surveys, it was termed as the top four brands that are contaminating the earth through carbon emissions and plastic output.

Alleged Product Disruption

The CEO of Coca-Cola Company decided iterated that the company was thinking about discontinuing product lines. Fans and loyal customers were enraged and vented their sentiments through social media.

Coca Cola External Factors

The external strategic factors include opportunities and threats that can immensely change the outlook and future of the company.

🤑 Opportunities

The most beneficial opportunities for Coca-Cola Company are given in this section.

Employing new marketing campaigns, alternative product lines, and alliances and collaborations will help Coca-Cola in expanding and enhancing its revenue.

New Product Lines

By introducing new products, Coca-Cola can not only improve its revenue streams and diversify its portfolio but can also redefine its brands, such as Diet Coke, Sprite, Costa Coffee, etc.

Coca-Cola Company owns already has a presence in the packaged water market which has immense potential to grow.

Strong Foothold in New Markets

By transferring focus to regions with temperate climates where cold drinks are never out of fashion, Coca-Cola can get a strong foothold in the beverage industry which will be translated into both short and long-term growth.

Reliable Supply Chain Systems

Coca Cola business model is all about improved supply chain and distribution of both raw materials and finished products. In its current state, it is too much dependent on costs and other variables. By improving its current position, Coca-Cola can eliminate uncertainty and negative impacts.

Strategic Acquisitions

Coca-Cola has started acquiring other companies and brands which is a great step in the right direction. Again, acquiring companies in new markets and regions will help the company to increase its revenue.

Alliances & Collaboration

Coca-Cola is stepping into the alcoholic beverages market from the beverage industry by collaborating with Corona. Both companies are looking to enhance their market share through product diversification which is the right call.

Refreshed Marketing Campaigns

Coca-Cola has always been at the forefront of implementing aggressive marketing plans. From TV to YouTube and beyond, it has marked its territory with immense zeal.

Now, it has joined the TikTok universe which will help the company expand further.

😨 Threats

These threats are deeply affecting Coca Cola and if they persist, they will endanger the company’s survival and long-term growth.

Controversies

When it comes to water controversies, Coca-Cola has its fair share all over the world. In many cases, rights groups and activists allege that the company uses too much water in scarce regions as well pollutes the rest through its proprietary methods and operations.

Lawsuits

Coca-Cola is sued by a California-based group for contributing to plastic pollution. In the paperwork, the brand was singled out for providing misleading details regarding its usage of recyclable plastic bottles.

Stiff Competition

Apart from Pepsi, which is a clear contender for the same carbonated beverages market space, Coca-Cola is facing many other competitors. When taking its latest portfolio into account, companies like Starbucks, Lipton Juices, Nescafe, etc. are either direct or indirect competitors to Coca-Cola.

Economic Recession

Due to pandemics, Coca-Cola has seen immense disruption and devastation in its supply chain and distribution. In quarantine, hotels, restaurants, travel, and other sectors of the economy were closed which contributed more than 50% of its sales.

Rising Health Awareness

Coca-Cola consumers are seeking alternative beverages made from healthy ingredients. This is another existential crisis for the company whose foundation is based upon sales of carbonated drinks which are essential sweetened water.

Compromised Quality

Recently, Coca-Cola recalled batches of its products over possible contamination. Credible sources opined that the products included metal bolts and washers. This is a big question mark on the quality standards and checks employed by a megabrand such as Coca-Cola.

Coca-Cola SWOT Table

Strengths

💪 Brand Identity
💪 High Brand Value
💪 Global Market Player
💪 Loyal Customer Base
💪 Lion’s Share in Market
💪 Exceptional Distribution & Supply Chain
💪 Impressive Employee Relations
💪 Re-Imagined Portfolio

Weaknesses

🤒 Tug-of-War with Pepsi
🤒 Health & Wellbeing Concerns
🤒 Legal Issues
🤒 Dependence on Suppliers
🤒 Environmental Concerns
🤒 Alleged Product Disruption

Opportunities

🤑 New Product Lines
🤑 Strong Foothold in New Markets
🤑 Reliable Supply Chain Systems
🤑 Strategic Acquisitions
🤑 Alliances & Collaboration
🤑 Refreshed Marketing Campaigns

Threats

😨 Controversies
😨 Lawsuits
😨 Stiff Competition
😨 Economic Recession
😨 Rising Health Awareness
😨 Compromised Quality

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