SWOT Analysis of Coca Cola | Coca Cola SWOT Analysis
Company Name: The Coca-Cola Company
Founded by: John Stith Pemberton (as Coca-Cola)
Asa Griggs Candler (as The Coca-Cola Company)
CEO: James Quincey (chairman also), Brian Smith (President and COO)
Year established: January 29, 1892
Headquarter: Atlanta, Georgia, United States
Industry: Beverage
Served: Worldwide
Number of Employees (Dec. 2019): 86,200 (2019)
Type: Public
Annual Revenue (end 2019): US$ US$37.27 billion (2019)
Profit (Net income) (end 2019): US$ US$8.92 billion (2019)
List of all brands (fully or partnership) owned by The Coca-Cola Company
SWOT Analysis of Coca Cola | Coca Cola SWOT Analysis
Coca Cola is a renowned beverage brand in the world right now. From bars to hotels, shops to offices, homes to restaurants, Coca Cola is easily available. Almost 94 % of people in the world identify the brand due to its white and red emblem. On average, 10k soft drinks from Coca Cola are used every moment of every day. It was founded in 1892 in Atlanta by John Pemberton. After a few years, it gained a lot of popularity worldwide. The current CEO of this gigantic corporation is James Quincey.
Let’s start the SWOT analysis of Coca Cola:
SWOT Analysis of Coca Cola | Coca Cola SWOT Analysis
Coca Cola Strengths:
Powerful Brand Recognition:
Coca Cola is the most selling brand across the world and has a unique brand name or identity.
Maximum Brand Worth:
Undoubtedly, Coca Cola is a world-famous brand with maximum brand worth. The company was also honored with the ‘’Highest Brand Equity Award’’ by Interbrand in 2011.
Unlimited Global Influence:
The company supplies its products in more than 200 countries. It has a record serving per day that is 9 billion. It has an extended reach because of its 500 latest items or products. Some of the latest products are Coca-Cola Vanilla and Cherry Coca Cola. It is a well-liked product in the world.
Best Brand Association and User Reliability:
Coca-Cola is also recognized as the US’s most emotionally associated brand. It is connected with ‘’Happiness’’ and has a powerful user loyalty. There’s no replacement for this famous drink and people can easily find out their specific taste. Furthermore, Fanta and Coca-Cola have a strong fan-base.
Biggest Brand Estimation:
Recently, Coca Cola is named as the 3rd Best Global Brand. It has a brand value of $79.96 billion and maintained the top place for many years.
Leading Market Share:
Among Pepsi and Coca Cola, Coca Cola has the biggest market share. Additionally, Sprite, Coke, Fanta, Diet Coke, Maaza, and Limca are the dominant growth drivers for Coca Cola.
Incomparable Sharing System:
Coca Cola has 250 bottling associates in the world. Plus, it has the most effective and most far-reaching distribution system.
Achievements:
In 2016, Coca-Cola has purchased AdeS which is the biggest soy-based beverage company in Latin America. With this purchase, Coca-Cola has increased its reach.
SWOT Analysis of Coca Cola | Coca Cola SWOT Analysis
Coca Cola Weaknesses:
Destructive Rivalry With Pepsi:
As everyone knows that Pepsi is the leading competitor of Coca Cola. Coca Cola has the biggest industry than Pepsi, but this kind of destructive competition can be the biggest weakness of Coca Cola.
Product Diversification:
Pepsi has better product diversification because of many items such as Lays, Kurkure, and many more. Coca-Cola is lagging in this segment which can damage the fame and brand repute.
Health Concerns:
Carbonated drinks can cause many health issues like obesity and diabetes because of its major sugar intake. Most of the doctors and health specialists prohibited the use of these carbonated drinks. This controversy can cause a problem for Coca Cola.
SWOT Analysis of Coca Cola | Coca Cola SWOT Analysis
Coca Cola Opportunities:
Launch New Products and Expand Its Fragments:
Coca-Cola should introduce new products in food segments just like Pepsi. This will help a lot to generate more revenue and brand reputation. Plus, they can also remove their name from the carbonated drink list with these achievements.
Expand Existence in Developing Countries:
The consumption of Coca Cola is highest in hot regions. They need to focus on African and Middle Eastern countries to increase their presence and brand name.
Convey Highly Developed Supply Chain Method:
Coca Cola is totally reliant upon the supply chain and logistics. Due to the increasing price of transportation and fuel, Coca-Cola should think about new methods of distribution.
Packed Drinking Water:
Coca Cola possesses various packaged drinking water companies such as Kinley. They just need to improve this segment because there’s great potential in this segment. Introduce new healthy drinks and win people’s hearts.
SWOT Analysis of Coca Cola | Coca Cola SWOT Analysis
Coca Cola Threats:
Water Usage Controversy:
Coca Cola has faced a huge backlash due to its water management problem. Many social activists have alleged the company for its consumption of water in water-scarce areas. They also claimed that the company is contaminating water by mixing pesticides.
Packaging Debate :
Most of the environmental groups criticize the company over its recycling process. They also condemn the use of single-use plastic bottles.
Direct and Indirect Contests:
The biggest rival of Coca Cola is Pepsi. However, some companies like Starbucks, Costa Coffee, Tropicana, Nescafe, and Lipton Juices can indirectly threaten the market value of Coca-Cola.
Suggestions:
Some suggestions are clarified as follows:
- Launch the latest products in health and food segments.
- Pay more attention to health related problems.
- Improve the water management system and address the increasing criticism and backlash.
- Expand its range in developing countries or humid regions.
- Improve their distribution and packaging systems.
- Working on green marketing and sustainability programs.
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