Coca Cola Swot Analysis

Company background: The Coca cola company is now a largest soft drink company in the world. Coca cola became the largest manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups which operate in more than 200 countries. Coca cola was invented on May 1886 by Dr. John Stith Pemberton in Jaco’s Pharmacy in Atlanta, Georgia. The name Coca cola was suggested by Pemberton’s book keeper, Frank Robinson. He penned the name Coca cola in the flowing script that is famous today. Strengths: Coca cola has been a complex part of the American culture for over a century. The images of the products has landed in many broadbands, and there pictures were taken deeply in the heart. The image is printed on posters, T-shirts, and hats. This is the most successful brand popularize in the world. In 2006, Coca cola is become one of the leading brand in globe top 100 brands. â€Å"Enjoy more than 685 moillion times a day around the world Coca cola stands as a smple, yet powerful symbol of quality and environment†(Allen,1995). Today, almost 230 kinds of products were produced in more than 200 countries, and the company is never give up to extend new market. Coca cola has the most workable bottling system, which allow the products packed to can, plastic bottles and glass bottles, that means their coke can meet different request for different consumers. In addtionally, Coca cola allow their authorised the local company to sell the products, it is a way to save time and money to built the transport network. Apart from the above strengths, Coca cola has a huge market share, which is about 44%, is higher than it’s competitor—Pepsi. This means people are more likely to buy products from Coca cola. For Coca cola, the market share rate is a important and useful power to grow and can help the company earn more revenue. Weakness: Health is an important issue in 21st century. As we know, coke contains high sugar and caffeine content. In Sempeteber 2006, the company received a report from Center for Science and Environment (CSE), which shows their products included chemicals could causes osteoporosis, damage the reproductive system and cancers (Scribd, 2006). This report will put the Coca cola in a very negative place, with any help for their brand and products. Due to 2006, cash which invested in operating activities was decreased in 7% compared with 2005. Net cash provide by operating activities is also less than the previous year. With a series of problems, their market share is decreasing during the year. This may cause financial problesm such as not enough money to invest in newly growing market. Coke is a product, it should be sold by retailers. However, some larege retailers have exclusive contracts with Pepsi and do not stock Coca cola’s products, such as KFC. This is an abuse, and may cause market share loss. These retailers like KFC are shopped all over the world, over two million dolars loss due to this reason. Oppotunities: Nowadays, from American south coast to a small country in China, from Moscow to Sydney, buy a bottle of Coca cola is the most easiest thing. Although Coca cola is a worldwide brand, it’s products are sold around the world, there still have some markets need investment. Because there is no current brand could compete with them, expansion into third world countries is the easiset than ever before. The population in thrid countries is two times more than developed countries. This is a big market for Coca cola to improve and these markets can make the revenue growing like a rocket. Because bottle water can increasing health concems, bottle water market is becoming a fast-growing market in these years. In 2006, approximately 15. 6 million dolars were earned in US bottle water market. In the bottle water market, flavoured water is a part which growing by about 10 billion dolars annually. Coca cola could use their market leader position to invest in flavored water market to take advantage of growing demand. Young people are more likely to choose coke, especially in Lartin American countries and Asia countries, more and more young people are contribute to their revenue. Ohterwise, carbonated beverages are very compatible with American fast food culture, therefore there are many retailers are shopped with Coca cola. Threats: Competition between each company is a big problem. The company faces competition in beverages market from local firm as well as globe players. Also, the company faces various competition nonalcoholic beverages such as juice, friut drinks. In many countries which Coca cola sell it’s products, there should be their primary competitior—Pepsi. Other competitor such as Kraft Foods, Nestle. Competitive factors impacting the company’s business include pricing, advertising, sales promotion programs, brand and trademark development and protection. There competition could impact Coca cola’s market share and revenue growth rate. For some political reasons, middle east countries boycotting US brands, which will influence Coca cola’s globe market plan and revenue. Consumers are start to look the better drinks whcih will not cause health problems. This has led to a decrease in the comsumption of carbonated and other sweetened beverages. Moreover, the US is the company’s core market, Coca cola already expect its performance in the region to be sluggish during 2007. Coca cola’s revenue could be adversely affected by a slowdown in the carbonated beverage market. Target consumer: Coca-Cola main objectives are to supply everyone their favourite drink and to satisfy the consumer needs and wants. Coca-Cola second main objectives are to provide profit to the shareholders and increase the market share. Target consumer is a set of buyers sharing common needs or characteristics that the company decides to serve. The company's beverages are generally for all consumers. However, there are some brands, which target specific consumers. For example, Coca-Cola's diet soft drinks are targeted at consumers who are older in age, between the years of 25 and 39. PowerAde sports water target those who are fit, healthy and do sport. Winnie the Pooh sipper cap Juice Drink target children between the ages 5-12. This type of market approach refers to market segmentation. The Coca-Cola Company when advertising, has a primary target market of those who are 13-24, and a secondary market of 10-39. The Coca-Cola Company's products include beverage concentrates and syrups, with the main product being finished beverages. The business has over 300 brands of beverages around the world with the main ones being Coke, Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and PowerAde. The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 litres, 1. 25 litres, 600mL and 300mL. These are also available in aluminium cans of 375mL. Coca-Cola is the most well known trademark, recognised by 94 per cent of the world's population. The business is very successful and holds a very good reputation. Allen J. 1995, Coca cola SWOT analysis, viewed 23 March 2010, http://www. coca-cola. com. Scribd 2006, Scribd, viewed 21 March 2010,http://www. scribd. com/doc/9995196/Swot-Analysis-of-Coca-Cola. http://en. wikipedia. org/wiki/coca-cola accessed 31 October 2009.