Swot Analysis For Coca-Cola
Here we will analyse the strengths, weaknesses, opportunities and threats for Coca-Cola. The strengths and weaknesses will be internal to Coca-cola and the opportunities and threats will be external to Coca-Cola.
Strengths
Most recognized brand name in the world
Recent research shows that Coca-Cola is the largest consumer brand name in the world. The popularity of the product means that most of the population globally know about the product. As a result, Coca-Cola is now in a position where it does not have to spend as heavily on creating a brand image since it is a very established product.
Various types of packaging
Coca Cola has various methods of packaging such as can, plastic bottles, glass bottles etc. This means that Coke has enough variety within is product packaging range to meet the various ...
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Recent research shows that Coca-Cola is the largest consumer brand name in the world. The popularity of the product means that most of the population globally know about the product. As a result, Coca-Cola is now in a position where it does not have to spend as heavily on creating a brand image since it is a very established product.
Various types of packaging
Coca Cola has various methods of packaging such as can, plastic bottles, glass bottles etc. This means that Coke has enough variety within is product packaging range to meet the various demands of its consumers
Consumer loyalty
Due to the high caffeine level and the distinct taste and brand image, the customer loyalty for Coke is very high. Coke is perceived as the most premium product within the cola industry
Largest market share in the soft drinks market
Coca Cola has the largest market share in the soft drinks industry. As a result of this popularity Coke is able to generate high profits which it is able to spend on advertising and product development for the purposes of increasing revenue and retaining its number one position.
Weaknesses
High sugar and caffeine content
Coke has a very high sugar and caffeine content. This has resulted in bad publicity and major concern about the product. In recent news articles, Coke has been linked to obesity in UK children. This was also discussed in parliament.
Declining trend in profits
Due to a high level of competitor in the industry, the profits of Coke have been declining. Coke has been forced to spend more money on advertising campaigns and product development for the purposes of maintaining its market share
Some large retailers have exclusive contracts with Pepsi and don’t stock Coke i.e. KFC
Not all retailers stock Coca Cola, certain franchises such as KFC and Burger King only stock Pepsi. This has resulted in a potential loss of revenues.
Opportunities
Expansion into third world countries where there is no current presence
There are plenty of third world countries that are recovering from Civil Wars. At present there are such countries where Coca Cola does not have a dominant presence. Coca Cola could tap into these markets by undertaking heavy investment in these countries.
Healthy energy drinks i.e. to compete with Lucozade
Energy drinks is very much a growing industry globally. Coke could try to develop a product that can compete in this market since it is potentially a high growth area.
Threats
Middle-East boycotting US brands
Coke is perceived as a US brand, the war in Iraq as lead to opposition against US brands. This has resulted in declining sales for US products as the US is perceived by many as the enemy. This has and could lead to decline in Coca Cola sales.
Western attitude against capitalism
Coca Cola is perceived as a very profitable enterprise. Western attitudes towards such capitalism are often very negative. This often results in brands such as Coca Cola having to investment some of its profits to within the community thus reducing overall profitability of the company. Also, due to the negative publicity by such campaigners, Coke is often under heavy public scrutiny.
New cheaper brands of cola i.e. Virgin Cola
There are many cheaper alternatives to Coke, this has lead to much competition within the industry. Even though Coke has the largest market share, its overall market share has been reducing. This has resulted in declining profits. If the effect of the competition becomes more significant then Coke could have potential problems with its profits.