Categories: SWOT Analysis

SWOT Analysis of Coca-Cola Company

  1. Bottled water drinking has increased 11 percent.
  2. Consumers prefer to drink new smaller beverage products that are not sold on a mass scale.
  3. One of the biggest opportunities is to diversify into the non-carbonated drinks such as coffee, water, juices, etc.
  4. The company can offer the hygienic products due to increasing number of health conscious consumers.
  5. European market and China show marvelous potential for growth.
  6. The economic conditions are improving globally after economic meltdown 2007-10.
  7. Diversify into complementary food products which will ultimately increase the drink consumption.
  8. Coca cola should increase its partnership with fast food chains.

Threats

 

  1. There is Low growth rate in the carbonated drinks market in North America which is the main market of Coca-Cola.
  2. There is a problem with Coke to raise its prices by an edge that would permit it to keep pace with inflation.
  3. Huge numbers of substitutes such as beer, water, juices, coffee etc are accessible to the end consumers.
  4. Pepsi is the strong competitor which competes with advertising and differentiation.
  5. Since the consumer lifestyle is changing rapidly and they are becoming more health conscious therefore there demand is shifting towards non-carbonated products such as juices, tea and bottled drinks.
  6. Many smaller players are furious competitors which are also creating the competition severe.
  7. The prices of raw material such as sugar and metals used in manufacturing of cans are increasing rapidly.
  8. Carbonated drink revenues have been decreasing due to association of sugar to obesity and lofty fructose lump syrup to heart disease.
  9. Pepsi has more diversified selling beverage and food products as compared to the Coca Cola.
  10. Coca Cola is facing various regulations in respective countries around the globe.

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