SWOT Analysis of Coca-Cola Company

Coca-Cola is the world’s largest soft-drink company which manufactures and markets non-alcoholic beverage concentrates and syrups. Besides the well known Coca-Cola and Coke brands the company offers more than 500 brands in over 200 countries or territories and serves 1.6 billion servings each day. It is headquartered in Atlanta, Georgia.

Strengths

1. Coca-Cola is the world’s most valuable brand and has strong brand loyalty.
2. Wide variety of Coca-Cola products is sold in the restaurants, stores and vending machines over 200 countries.
3. Coke is the dominant market leader of the global soft-drink industry right through the 20th century.
4. Coke primarily competes on advertising and differentiation and has the high market share.
5. Coca-Cola has enormous distribution and production facilities of non-alcoholic beverages and related products.
6. Joint venture with Nestle has resulted in the formation of Beverage Partners Worldwide (BPW).
7. The company has strong financial position and profits throughout the history. Its average ROE (return on equity) for the past five years is 37.08% whereas its ROC (return on capital) is 33.6%.
8. Coca-Cola has the heavy advertising and promoting activities.
9. More than 70 percent of revenue comes from outside the United States.
10. Enormous number of loyal customer’s and brand equity all over the world.

Weaknesses

1. New coke formula leading to a backlash which results in bad image of coke.
2. The company is facing high burden of external debts for the last few years. In 2002, long-term debt of the company was 2700 million dollars.
3. Product offering is restricted to beverages.
4. In November 2009, because of a dispute over wholesale prices of Coca-Cola goods, Costco blocked the replenishment of their shelves with Diet Coke and coke.
5. Coca-Cola has discontinued its many products after few years of launching such as New Coke, Coca-Cola with Lemon, Coca-Cola with Lime, Coca-Cola Blak, etc. which result in bad image of the brand.
6. Coke has taken less aggressive market standing in today’s changing economic surroundings.

Opportunities