SWOT analysis of Coca Cola

Coca cola could be a brand that is gift in households, shops, hotels, offices, etc. You name it, and the place would have heard of cola. Coca cola has many merchandise in its arsenal. Here is the SWOT analysis of cola.

Strengths 

Brand Equity – Inter brand in 2011 awarded Coca cola with the best whole equity award. Coca cola with its vast international presence and distinctive whole identity is certainly one in every of the most expensive wholes with the best brand equity.

Company valuation – One of the foremost valuable companies within the world, Coca cola is valued around 79.2 billion bucks. This valuation includes the brand price, the numerous factories and assets opened up across the globe and therefore the complete operations value and profit of cola.

Vast international presence – Coca cola has its presence in two hundred countries across the globe. Chances are, any country that you visit, you will notice cola gift in this market. This vast international presence of coca cola has conjointly contributed to the building of the mammoth name.

Largest market share – There are solely a pair of huge competitors in the drinkable section – cola and cola. Out of these 2, coca cola is that the clear winner and hence has the most important market share. Amongst all beverages, Coke, Sprite, Diet coke, Fanta, and Maaza are the growth drivers for cola.

Fantastic marketing ways – Coca cola in contrast to cola continually tries to win peoples heart. Where Pepsi’s target is unceasingly dynamical, and is targeted towards youngsters, Coca cola targets people of all ages. The targeting is also done by celebrities World Health Organization are well likable – for instance – Amitabh Bacchan, Sachin tendulkar, Aishwarya Rai, Aamir Khan etc

Customer Loyalty – With such sturdy merchandise, it is natural that coca cola features a lot of client loyalty. The products mentioned higher than like Coca cola and Fanta have a large fan following. People can like these soft drinks over others. Because of the great style of cola, finding substitutes becomes difficult for the client.

Distribution network – Coca cola has the most important distribution network thanks to the demand within the marketplace for its products. On the other hand, due to this successful distribution network, Coca cola has been ready to command such a high market presence.

Weaknesses 

Competition with coca cola – Pepsi is a thorn within the flesh for cola. Coca cola would are the clear market leader had it not been for Pepsi. The competition in these two brands is Brobdingnagian and we tend to don’t assume cola can surrender therefore simply.

Product Diversification is low – Where cola has created a good move and distributed into the snacks section with merchandise like Lays and Kurkure, Coca cola is missing from that segment. The section is conjointly an honest revenue driver for cola and had cola been gift during this segment, these products would have been an extra revenue driver for the corporate.

  

Absence in health beverages – If you watch the news, you would know that fat could be a major downside poignant folks today. The business environment is dynamical and folks are taking measures to confirm that they're not weighty. effervescent beverages are one of the main reasons for fat intake and cola is that the largest manufacturer of Carbonated beverages. The inference is that the consumption of beverages in developed countries would possibly go down as folks can like a healthy different.

Water management – Coca cola has faced flak within the late to its water management problems. Several teams have raised lawsuits in the name of cola thanks to their immense consumption of water even in water scarce regions. At the same time, people have conjointly infernal Coca cola for admixture pesticides within the water to clear contaminants. Thus water management wants to be higher for cola.

Opportunities 

Diversification – Diversification in the health and food business will improve the offerings of cola to their customers. This will conjointly make sure that they convalesce revenue from existing customers by cross commerce their merchandise. The supply chain that is distributing their beverages may distribute these snacks thereby sharing the load of offer chain prices.

Developing nations – Although developed nations have a high presence of Coca cola, these countries are slowly moving towards healthy beverages. However developing countries are still being introduced to the delight of effervescent drinks and soft drinks. Countries like India that are developing and have a hot summer, find the consumption of cold drinks virtually doubled throughout summers. Thus the higher consumption in developing business setting may be an honest chance to capitalize for cola.

Packaged drinking water – With hygiene turning into a serious consider the consumption of water, Packaged drinking water has found its method into peoples mind. Coca cola features a presence within the packed water segment tho' Kinley. Although Kinleys enlargement is slow as of currently, Kinley has a huge potential of enlargement. Thus Coca cola as a corporation ought to concentrate on the enlargement of Kinley as a whole and take it up to Bisleri ‘s level of trust.

Supply chain improvement – offer chain will be a serious value sink hole with the transportation prices continually rising. Coca cola’s complete business is based on transportation and distribution. There will continually be potential enhancements during this space. Thus Coca cola ought to keep strict watch on its offer chain and keep rising to bring the price down.

Market the lesser selling merchandise – In the product portfolio of cola, there are many merchandise that have not found acceptance within the market. Coca Cola must consider the marketing of those merchandise also. It is understood that cola has made many expenses to launch these merchandise. Thus, the marketing and subsequent  rise of sale of these merchandise can facilitate revenue of cola.

Threats

Raw material sourcing – Water is that the only threat to cola. The weakness of Coca cola was the suspected use of pesticides or immense consumption of water. However, the threat here is that water scarcity is on the rise. With the climate changing, and regions of various countries facing deficiency of water, sooner or later someone would possibly raise fingers on drinkable firms. Thus, Water sourcing is an axe that will fall anytime on the pinnacle of cola. If water is limited or distributed, Coca cola can expertise a serious downfall in their revenue and capability of distribution. The same can have an effect on its arch rival cola also.

Indirect competitors – Coffee chains like Starbucks, Café coffee day, Costa coffee are on the rise. These chains offer a healthy competition to Coca colas effervescent drinks. They might not be a giant competition for Coke, but they do provides a dent to its drinkable market. Similarly, health drinks like Real and Tropicana as well as energy drinks like Red bull and Gatorade are stealing away the market share indirectly.