Swot Analysis of Coca-Cola Company Essay

September 3, 2017 History

Coca-Cola is the world’s largest soft-drink company which manufactures and markets non-alcoholic drink dressed ores and sirups. Besides the well-known Coca-Cola and Coke brands the company offers more than 500 trade names in over 200 states or districts and serves 1. 6 billion helpings each twenty-four hours. It is headquartered in Atlanta. Georgia.

Strengths

1. Coca-Cola is the world’s most valuable trade name and has strong trade name trueness. 2. Wide assortment of Coca-Cola merchandises is sold in the eating houses. shops and peddling machines over 200 states. 3. Coke is the dominant market leader of the planetary soft-drink industry right through the twentieth century. 4. Coke chiefly competes on advertisement and distinction and has the high market portion. 5. Coca-Cola has tremendous distribution and production installations of non-alcoholic drinks and related merchandises. 6. Joint venture with Nestle has resulted in the formation of Beverage Partners Worldwide ( BPW ) . 7. The company has strong fiscal place and net incomes throughout the history. Its mean ROE ( return on equity ) for the past five old ages is 37. 08 % whereas its ROC ( return on capital ) is 33. 6 % . 8. Coca-Cola has the heavy advertisement and promoting activities. 9. More than 70 per centum of gross comes from outside the United States. 10. Enormous figure of loyal clients and trade name equity all over the universe.

Failings

1. New coke formula taking to a recoil which consequences in bad image of coke. 2. The company is confronting high load of external debts for the last few old ages. In 2002. long-run debt of the company was 2700 million dollars. 3. Merchandise offering is restricted to drinks. 4. In November 2009. because of a difference over sweeping monetary values of Coca-Cola goods. Costco blocked the refilling of their shelves with Diet Coke and coke. 5. Coca-Cola has discontinued its many merchandises after few old ages of establishing such as New Coke. Coca-Cola with Lemon. Coca-Cola with Lime. Coca-Cola Blak. etc. which consequence in bad image of the trade name. 6. Coke has taken less aggressive market standing in today’s altering economic milieus.

Opportunities

1. Bottled H2O imbibing has increased 11 per centum. 2. Consumers prefer to imbibe new smaller drink merchandises that are non sold on a mass graduated table. 3. One of the biggest chances is to diversify into the non-carbonated drinks such as java. H2O. juices. etc. 4. The company can offer the hygienic merchandises due to increasing figure of wellness witting consumers. 5. European market and China show fantastic potency for growing. 6. The economic conditions are bettering globally after economic meltdown 2007-10. 7. Diversify into complementary nutrient merchandises which will finally increase the drink ingestion. 8. Coca Cola should increase its partnership with fast nutrient ironss.

Menaces

1. There is Low growing rate in the carbonated drinks market in North America which is the chief market of Coca-Cola. 2. There is a job with Coke to raise its monetary values by an border that would allow it to maintain gait with rising prices. 3. Huge Numberss of replacements such as beer. H2O. juices. java etc are accessible to the terminal consumers. 4. Pepsi is the strong rival which competes with advertisement and distinction. 5. Since the consumer life style is altering quickly and they are going more wellness witting hence there demand is shifting towards non-carbonated merchandises such as juices. tea and bottled drinks. 6. Many smaller participants are ferocious rivals which are besides making the competition severe. 7. The monetary values of natural stuff such as sugar and metals used in fabrication of tins are increasing quickly. 8. Carbonated drink grosss have been diminishing due to association of sugar to fleshiness and exalted fructose ball sirup to bosom disease. 9. Pepsi has more diversified merchandising drink and nutrient merchandises as compared to the Coca Cola. 10. Coca Cola is confronting assorted ordinances in several states around the Earth.