The Coca-Cola Company SWOT Analysis
Strengths of the Coca Cola Company
- Well-known company – The Coca Cola Company is recognised by people all around the world and is most popular within youngsters, teenagers and even adults.
- Most used fizzy drinks company – From all fizzy drinks companies available, Coca-Cola Company is more popular than the rest.
- High Market Share – They have a high market share
- High profit margin – They are continuously making profit with their sales which has helped them to have a high profit margin.
- Good quality beverages – All beverages by The Coca-Cola Company are of high quality
- World-wide factories – The Coca-Cola Company is a worldwide company with factories all over the world. The company serves over 300 countries or territories and serves 1.5 billion servings each day.
- Very efficient production rate
- Majority well known products – All their products are well known and recognised by the world.
Weaknesses of the Coca-Cola Company
- The distribution channels – The Coca-Cola Company could improve their distribution channels due to it being weak.
- High price – Another weakness of the company is their prices. Their prices of their products are quite high.
Opportunities for the Coca-Cola Company
- Change area of expertise to a variety other than beverages – They should expand their business by not only producing beverages but also by exploring a variety of popular items or products to reproduce such as confectionery items. A few examples would be chocolates, chewing gum, Ice-Creams, sweets and many more.
Threats for the Coca-Cola Company
- Rival Company’s – There are many beverage company’s that are in competition with the Coca-Cola Company to become the largest beverage and fizzy drinks company. Examples of their competitors are PepsiCo and Dr Pepper.
- Market share decreases – recently their profits have been fluctuating.
- Economical
PEST Analysis
PEST analysis is an analysis used to investigate the outside environment in which an organisation is operating. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. PEST stands for Political, Economic, Social and Technological.
- Political factors include areas such as tax policy, employment laws, environmental regulations, trade restrictions and tariffs and political stability. These can define the way the company is run, and the informal and formal rules that the firm must allow to stay a legitimate business.
- Economic factors are economic growth, interest rates, exchange rates, and inflation rate. These can affect the capital of the company, the purchasing power of the potential buyers.
- Social factors often look at the cultural aspects and include health consciousness, population growth rate, age distribution, gender, career attitudes and emphasis on safety. These affect the customer’s needs and the size of the potential market.
- Technological developments affect organisations. Growing ownership of computers and the influence of the internet are allowing people to buy virtually anything without leaving their homes. These can influence decisions of the company and possibly reduce the minimum efficient production levels.
Below is a PEST analysis of the Coca-Cola Company. I will be mentioning the political, economic, social and technological factors of the company.
The Coca-Cola Company PEST Analysis
PEST Analysis is useful before a SWOT Analysis, not generally vice-versa, but PEST tends to help identify SWOT factors. There is an overlap between the two and that similar factors appear in both analysis, however PEST and SWOT analysis are two different perspectives.
PEST analysis assesses a market, including competitors, from the standpoint of a business whereas SWOT analysis is an assessment of a business, whether it is your own or a competitor's. PEST analysis becomes more useful and significant; the larger and the more complicated the business, even for a very small local business, a pest analysis can still throw up one or two very major issues that might be missed.
All businesses benefit from a SWOT analysis, and all businesses benefit from completing a SWOT analysis of their main competitors, which interestingly can then provide some feed back into the economic aspects of the PEST analysis.
