SWOT Analysis

  Strengths Weaknesses
Internal -Popularity -Word of mouth
-well known -lack of popularity of many Coca
-branding obvious and easily Cola’s brands
recognized -Most unknown and rarely seen
-A lot of finance -result of low profile or non-existent
-customer loyalty advertising
-International Trade -health issues
 
  Threats Opportunities
Externa -changing health-consciousness -many successful brands to pursue
l attitude -advertise its less popular products
-legal issues -buy out competition.
-Health ministers -More Brand recognition
-competition (Pepsi)
 
 
Strengths- Coca Cola is an extremely recognizable company. Popularity is one of its
superior strengths that is virtually incomparable. Coca Cola is known very well
worldwide. It's branding is obvious and easily recognized. Things like, logos and promos
shown on t-shirts, hats, and collectible memorabilia. Without a doubt, no beverage
company compares to Coca Cola's social popularity status. Some people buy coke, not
only because of its taste, but because it is widely accepted and they feel like they are
part of something so big and unifying. At the other end of the spectrum, certain
individuals choose not to drink coke, based solely on rebelling from the world's idea that
coke is something of such great power. Overwhelming is the best word to describe Coca
Cola's popularity. It is scary to think that its popularity has been constantly growing over
the years and the possibility that there is still room to grow. If you speak the words “Coca
Cola”, it would definitely be recognized all around the world. Money is another thing that
is a strength of the company. Coca Cola deals with massive amounts of money all year.
Like all businesses, they have had their ups and downs financially, but they have done
well in this compartment and will continue to do well and improve. The money they are
earning is substantially better than most beverage companies, and with that money, they
put back into their own company so that they can improve. Another strength that is very
important to Coca Cola is customer loyalty. The 80/20 rule comes into effect in this
situation. Eighty percent of their profit comes from 20% of their loyal customers. Many
people/families are extremely loyal to Coca Cola. It would not be rare to constantly find
bottles and cases of a product such as coke in a house. It seems that some people
would drink coke religiously like some people would drink water and milk. This is an
improbable feat. Customers will continually purchase these products, and will probably
do so for a very long time. If two parents were avid Coca Cola drinkers, this will be
passed down do their children as they grow loyal to the company. With Coca Cola’s
ability to sell their product all over the world, customers will continue to buy what they
know and what they like…Coca Cola products.
 
Weaknesses- Coca Cola is a very successful company, with limited weaknesses.
However they do have a variety of weaknesses that need to be addressed if they want to
rise to the next level. Word of mouth is probably a strength and weakness of every
company. While many people have good things to say, there are many individuals who
are against Coca Cola as a company, and the products in which they produce. Word of
mouth unfortunately is something that is very hard to control. While people will have their
opinions, you have to try to sway their negative views. If bad comments and views are
put out to people who have yet to try Coca Cola products, then that could produce a lost
customer which shows why word of mouth is a weakness. Another aspect that could be
viewed as a weakness is the lack of popularity of many of Coca Cola’s drinks. Many
drinks that they produce are extremely popular such as Coke and Sprite but this
company has approximately 400 different drink types. Most are unknown and rarely
seen for available purchase. These drinks do not probably taste bad, but are rather a
result of low profile or non existent advertising. This is a weakness that needs to be
looked at when analyzing their company. Another weakness that has been greatly
publicized is the health issues that surround some of their products. It is known that a
popular product like coke is not very beneficial to your body and your health. With
today’s constant shift to health products, some products could possibly loose customers.
This new focus on weight and health could be a problem for the product that are labeled
detrimental to you health.
 
Opportunities- Coca Cola has a few opportunities in its business. It has many successful
brands that it should continue to exploit and pursue. Coca Cola also has the opportunity
to advertise its less popular products. With a large income it has the available money to
put some of these other beverages on the market. This could be very beneficial to the
company if they could start selling these other products to the same extent that they do
with their main products. Another opportunity that we have seen being put to use before
is the ability for Coca Cola to buy out their competition. This opportunity rarely presents
itself in the world of business. However, with Coca Cola’s power and success, such a
task is not impossible. Coca Cola has bought out a countless number of drink brands.
An easy way to turn their profit into your profit is too buy out their company. Even though
this may cost a vast amount of money initially, in the long run, if all goes to plan, it
results in a large profit. Also, the company will no longer need to worry about this
product being part of the competition. Brand recognition is the significant factor affecting
Cokes competitive position. Coca Cola is known well throughout 90% of the world
population today. Now Coca Cola wants to get there brand name known even better and
possibly get closer and closer to 100%. It is an opportunity that most companies will ever
dream of, and would be a supreme accomplishment. Coca Cola has an opportunity to
continue to widen the gap between them and their competitors.
 
Threats- Despite the fact that Coca Cola dominates its market, it still has to deal with
many threats. Even though Coca Cola and Pepsi control nearly 40% of the entire
beverage market, the changing health-consciousness attitude of the market could have
a serious effect on Coca Cola. This definitely needs to be viewed as a dominant threat.
In today’s world, people are constantly trying to change their eating and drinking habits.
This could directly affect the sale of Coca Cola’s products. Another possible issue is the
legal side of things. There are always issues with a company of such supreme wealth
and popularity. Somebody is always trying to find fault with the best and take them
down. Coca Cola has to be careful with lawsuits. Health minister could also be looked at
as a threat. Again, some people may try to exploit the unhealthy side of Coca Cola’s
products and could threaten the status and success of sales. Other threats are of course
the competition. Coca Cola’s main competition being Pepsi, sells a very similar drink.
Coca Cola needs to be careful that Pepsi does not grow to be a more successful drink.
Other product such as juices, coffee, and milk are threats. These other beverage options
could take precedent in some people’s minds over Coca Cola’s beverages and this
could threaten the potential success it presents again. 

http://www.thecoca-colacompany.com/heritage/ourheritage.html