Swot Analysis for Coca-Cola

Swot Analysis For Coca-Cola

Here we will analyse the strengths, weaknesses, opportunities and threats for Coca-Cola. The strengths and weaknesses will be internal to Coca-cola and the opportunities and threats will be external to Coca-Cola.

Strengths Weaknesses

• Most recognized brand name in the world

• Various types of packaging

• Consumer loyalty

• Largest market share in the soft drinks market

• High sugar and caffeine content

• Declining trend in profits

• Some large retailers have exclusive contracts with Pepsi and don’t stock Coke i.e. KFC

Opportunities Threats

• Expansion into third world countries where there is no current presence

• Healthy energy drinks i.e. to compete with Lucozade

• Middle east boycotting US brands

• Western attitude against capitalism

• New cheaper brands of cola i.e. Virgin Cola

Strengths

Most recognized brand name in the world

Recent research shows that Coca-Cola is the largest consumer brand name in the world. The popularity of the product means that most of the population globally know about the product. As a result, Coca-Cola is now in a position where it does not have to spend as heavily on creating a brand image since it is a very established product.

Various types of packaging

Coca Cola has various methods of packaging such as can, plastic bottles, glass bottles etc. This means that Coke has enough variety within is product packaging range to meet the various demands of its consumers

Consumer loyalty

Due to the high caffeine level and the distinct taste and brand image, the customer loyalty for Coke is very high. Coke is perceived as the most premium product within the cola industry

Largest market share in the soft drinks market

Coca Cola has the largest market share in the soft drinks industry. As a result of this popularity Coke is able to generate high profits which it is able to spend on advertising and product development for the purposes of increasing revenue and retaining its number one position.

Weaknesses

High sugar and caffeine content

Coke has a very high sugar and caffeine content. This has resulted in bad publicity and major concern about the product. In recent news articles, Coke has been linked to obesity in UK children. This was also discussed in parliament.

Declining trend in profits

Due to a high level of competitor in the industry, the profits of Coke have been declining. Coke has been forced to spend more money on advertising campaigns and product development for the purposes of maintaining its market share

Some large retailers have exclusive contracts with Pepsi and don’t stock Coke i.e. KFC

Not all retailers stock Coca Cola, certain franchises such as KFC and Burger King only stock Pepsi. This has resulted in a potential loss of revenues.

Opportunities

Expansion into third world countries where there is no current presence

There are plenty of third world countries that are recovering from Civil Wars. At present there are such countries where Coca Cola does not have a dominant presence. Coca Cola could tap into these markets by undertaking heavy investment in these countries.

Healthy energy drinks i.e. to compete with Lucozade

Energy drinks is very much a growing industry globally. Coke could try to develop a product that can compete in this market since it is potentially a high growth area.

Threats

Middle-East boycotting US brands

Coke is perceived as a US brand, the war in Iraq as lead to opposition