Categories: SWOT Analysis

SWOT Analysis of Coca-Cola Company

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify">Coca-Cola is the world&&num;8217&semi;s largest soft-drink company which manufactures and markets non-alcoholic beverage concentrates and syrups&period; 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&period;6 billion servings each day&period; It is headquartered in Atlanta&comma; Georgia&period; <&sol;p>&NewLine;<h3>&&num;160&semi;<&sol;h3>&NewLine;<h3>Strengths<&sol;h3>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<ol>&NewLine;<li>&NewLine;<div align&equals;"justify">Coca-Cola is the world&&num;8217&semi;s most valuable brand and has strong brand loyalty&period;<&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Wide variety of Coca-Cola products is sold in the restaurants&comma; stores and vending machines over 200 countries&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Coke is the dominant market leader of the global soft-drink industry right through the 20th century&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Coke primarily competes on advertising and differentiation and has the high market share&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Coca-Cola has enormous distribution and production facilities of non-alcoholic beverages and related products&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Joint venture with Nestle has resulted in the formation of Beverage Partners Worldwide &lpar;BPW&rpar;&period;<&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">The company has strong financial position and profits throughout the history&period; Its average ROE &lpar;return on equity&rpar; for the past five years is 37&period;08&percnt; whereas its ROC &lpar;return on capital&rpar; is 33&period;6&percnt;&period;&NewLine;<&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Coca-Cola has the heavy advertising and promoting activities&period;<&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">More than 70 percent of revenue comes from outside the United States&period;<&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Enormous number of loyal customer&&num;8217&semi;s and brand equity all over the world&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<&sol;ol>&NewLine;<h3>&&num;160&semi;<&sol;h3>&NewLine;<h3>&&num;160&semi;<&sol;h3>&NewLine;<h3>Weaknesses<&sol;h3>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<ol>&NewLine;<li>&NewLine;<div align&equals;"justify">New coke formula leading to a backlash which results in bad image of coke&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">The company is facing high burden of external debts for the last few years&period; In 2002&comma; long-term debt of the company was 2700 million dollars&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Product offering is restricted to beverages&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">In November 2009&comma; because of a dispute over wholesale prices of Coca-Cola goods&comma; Costco blocked the replenishment of their shelves with Diet Coke and coke&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Coca-Cola has discontinued its many products after few years of launching such as New Coke&comma; Coca-Cola with Lemon&comma; Coca-Cola with Lime&comma; Coca-Cola Blak&comma; etc&period; which result in bad image of the brand&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Coke has taken less aggressive market standing in today&&num;8217&semi;s changing economic surroundings&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<&sol;ol>&NewLine;<h3>&&num;160&semi;<&sol;h3>&NewLine;<h3>&&num;160&semi;<&sol;h3>&NewLine;<h3>Opportunities<&sol;h3>&NewLine;<p> &&num;160&semi;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;

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