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Final updated: January 21, 2022

Visitor: The Coca-Cola Company
CEO: James Quincey
Twelvemonth founded: 1886
Headquarter: Atlanta, USA
Number of Employees (Dec 2020): 86,200
Public or Private: Public
Ticker Symbol: KO
Market place Cap (Jan 2022): $261.i Billion
Annual Revenue (Dec 2020): $33.ane Billion
Profit |Net income (Dec 2020): $7.7 Billion

Products & Services: Coca-Cola | Diet Coke | Coke Zilch | Ciel | Dasani | Del Valle | Fanta | Fair life | Georgia | Gilded Tiptop Tea | Honest Tea | Mello Yello | Minute Maid | Odwalla | Powerade | Only Beverages | Glaceau Smartwater | Sprite | Suge | Glaceau vitamin water | Zico
Competitors:Pepsi | Dr Pepper Snapple | Mountain Dew | Gatorade | Nestle | Redbull | Parle

Fun Fact:

Did yous know that Coca-Cola originally contained traces of Cocaine?

An Overview of Coca-Cola

The market leader in the soft drinks industry, Coca-Cola is i of the most renowned brands across the globe. Be it your domicile, part, shops, hotels, bars or restaurants, Coca-Cola is everywhere!

94% of the world's population recognizes the brand instantly by its cherry and white Coca-Cola logo as per Business Insider. More than x,000 soft drinks from Coca-Cola are consumed every second of every twenty-four hours on average.

Coca-Cola was established in 1886 in Atlanta by John Pemberton. Within a few years, Coca-Cola became the nearly recognized, renowned, and widely distributed brand in the world. Currently, James Quincey is the CEO of this mega corporation.

Read on to discover more than almost the earth'south renowned beverage brand through this Coca Cola SWOT assay.

SWOT Analysis of Coca-Cola

The post-obit is a SWOT analysis of Coca Cola:

Coca-Cola Strengths – Internal Strategic Factors

1. Strong brand identity – Coca-Cola is a highly popular brand with a unique brand identity. Its soft drinks are the almost-selling drinks in history.

2. High brand valuation – Coca-Cola is undoubtedly 1 of the most renowned brands with a high make value. Co-ordinate to Interbrand annual written report, Coca Cola is ranked sixth best global brand in 2021 with a brand value of $57 Billion. Other peak ranking companies on the list areApple at #1, Amazon at #two, Microsoft  at #3 Google at #4 and Samsung at #5 position. [1]

3. Extended global reach – It is sold in more than 200 countries with 1.9 billion servings per mean solar day of Company products. It has introduced more 500 new products globally. Some of these are variations of Coca-Cola beverage, like Coco Cola Vanilla and Cherry Coca-Cola. Its brands are known to touch every lifestyle and demography.

4. Greatest brand association and customer loyalty – Coca-Cola is considered one of US'south most emotionally-continued brands. This valuable brand is associated with 'happiness' and has strong client loyalty. Customers can apace identify their particular taste. Finding its substitutes is difficult for them. Moreover, Coca-Cola and Fanta take a huge fan following than other beverage names in the industry.

5. Dominant market share – Out of Coca-Cola and Pepsi, the only ii largest manufacturers of soft drinks in the beverage segment, Coca-Cola has the largest marketplace share. Coke, Sprite, Nutrition Coke, Fanta, Limca, and Maaza are the highest growth drivers for Coca-Cola.

6. Unparalleled distribution system – Coca-Cola has the most efficient and well-nigh all-encompassing distribution network in the world. The company has nigh 225 bottling partners and about 900 bottling plants globally.

7. Acquisitions –Coca-Cola has a long list of strategic and profitable acquisitions including Costa coffee chain, Fairlife (Milk Products), Fuze Tea, AdeS, and many more. Through these acquisitions, Coca-Cola expanded its gear up-to-drink beverage portfolio. [2]
8. Repositioning portfolio -Coca-Cola Visitor has repositioned and reduced the numbers of its global brands from 400 to200 brands in 5 major categories such as :
   • Coca Cola
   • Sparkling Flavors
   • Nutrition, Juice, Dairy & Plant
   • Hydration, Sports, Tea & Coffee
   • Emerging

Coca-Cola Weaknesses – Internal Strategic Factors

1. Aggressive competition with Pepsi – Pepsi is the biggest rival of Coca-Cola. Had it non been Pepsi , Coca-Cola would have been the clear market leader in the drink.

2. Product diversification – Coca-Cola has depression product diversification . Where Pepsi has launched many snacks items like Lays and Kurkure, Coca-Cola is lagging in this segment. It gives Pepsi leverage over Coca-Cola.

3. Health concerns –Carbonated drinks are one of the major sources of  saccharide intake. It results in two grave health issues – obesity and diabetes. Coca-Cola is the biggest manufacturer of carbonated beverages. Many health experts accept prohibited the apply of these soft drinks. It is a controversial event for the company. However, Coca-Cola hasn't devised any health alternative or solution for this problem yet.

4. Lawsuits – Trust is undermined whenever the company is accused of wrongdoing. Coca Cola is facing a patent infringement lawsuit for using a dispenser that can recognize users and customize drinks based on their preferences. [three]

5. Overdependence on Third-Party Technology Providers – Coca Cola's operations rely heavily on the technological expertise of third-parties. The company signed another five-yr deal with Microsoft to supply concern software. [four]

6. Environmentally Destructive Packaging – In the 2020 TearFund report, Coca Cola was named as 1 of the four world's largest consumer brands that are contributing immensely to global warming and carbon emissions by using throwaway plastic bottles. [5]

7. CEO of Coca-Cola Aims to Reduce Cherished Coke Products – James Quincy, the current CEO of Coca-Cola and a renowned businessman, has recently been bombarded with disgruntled grievances of Coke fans. The complaints are coming in because of the CEO's shocking determination to permanently discontinue some of the well-nigh popular products from Coca-Cola's diverse production portfolio. Coca-Cola aims to eliminate in-demand and popular products such every bit Tab (a diet drink), Odwalla (a smoothie brand), and the loved coconut water Zico.

Coca-Cola Opportunities – External Strategic Factors

1. Innovate new products and diversify its segments – Coca-Cola has the opportunity to introduce new offerings in wellness and food segments just like Pepsi. It can contribute to their revenue, and they can branch out from carbonated drinks.

2. Increase presence in developing nations – Many regions with hot climate take the highest consumption for cold drinks. Thus, increasing presence in such emerging markets tin can exist excellent – Eye Eastern and African countries are a good instance.

3. Bring advanced supply chain arrangement – Coca Cola's business organisation is entirely dependent upon logistics and supply chain. Transportation costs and fuel prices are always on the rising. Thus, coming upward with some advanced and improved systems for distribution tin be an opportunity.

4. Packaged drinking h2o – Coca-Cola owns several packaged drinking h2o brands like Kinley. In that location is a great potential for expansion in this segment for Coca-Cola. There is an opportunity to expand and bring more than salubrious drinks in the market to avoid people's criticism.

5. Expand through Acquisition – Although different sectors offer lucrative opportunities for growth, quick entry into these markets can be a claiming. Recently, Coca-Cola's growth was driven by some of its contempo acquisitions like Costa Java, Aha sparkling water and information technology can do information technology over again. It has the financial resources to acquire startups or SMBs in emerging markets and exploit the numerous opportunities they present. [6]

6. Partners with Constellation Brand – One of the globe's biggest not-alcoholic beverages brand teams upwardly with Corona manufacturers Constellation Brands to makealcoholic Fresca cocktails. It seems similar a good maneuver by Coca-Cola in an ecosystem where a handful of non-alcoholic brands are diversifying their production portfolios.

   Moreover, both companies are looking to catch a bigger market share for the much-in-need spirits-based cocktail drinks. Following the news of the partnership, Constellation Brands' share went upwardly past 1%.

7. Coca-Cola introduces its very Beginning TikTok challenge across the U.s. – Coca-Cola enters the TikTok stratosphere, announcing the company's first-always TikTok challenge in the United states of america. Information technology'due south an excellent move for the visitor to heighten its make recognition farther.

TikTok is a huge platform with over1 billion monthly active users. Debuting its first TikTok claiming, Coca-Cola has as well collaborated with Grammy-nominated music artist 'Khalid' to sing the challenge'due south get-go opening song. Moreover, Coca-Cola will also collaborate with choreographer Jalaiah Harmon, the young woman behind the famous Renegade Dance.

Coca-Cola Threats – External Strategic Factors

1. H2o usage controversy – Coca-Cola has faced many criticisms over its h2o management effect. Many social and environmental groups have claimed that the company has a vast consumption of water in water-deficient regions. Besides, people take declared that Coca-Cola is polluting h2o and mixing pesticides in water to clear contaminants.

2. Pollution Lawsuit – Coke and 3 other companies are being sued by a California ecology group for contributing to plastic pollution. In the lawsuit, Coca-Cola is singled out for misleading the public about the recyclability of its unmarried-use plastic bottles. [7]

3. Direct and indirect competition – Although straight competition from Pepsi is articulate in the market, notwithstanding, there are many other companies which are indirectly competing with Coca-Cola. Starbucks, Costa Coffee, Tropicana, Lipton juices, and Nescafe, are the indirect competitors of Coca-Cola which can threaten its market position.

4. Economic Uncertainty – The recent events have negatively afflicted business operations, supply and distribution chains, and devastated revenues of many global companies. In 2020, Coca Cola's revenues declined drastically as restaurants, theaters, and other venues that contribute nigh half of its acquirement remained airtight due to the global crisis. [eight]

5. Increasing Health-Consciousness – Consumers are increasingly adopting healthy lifestyles and avoid products with unhealthy ingredients. The increase in health-consciousness tin can reduce Coca Cola's sales and profits as customers migrate to healthier options offered by competitors. [9]

6. Coca-Cola Recalls Sodas and Juices over Possible Contamination –According to Nutrient Safety News, Coca-Cola announced a recall of its Minute Maid and Coke products over possible contagion issues. According to reports, the brands that accept been recalled include Maid Drupe Punch, Strawberry Lemonade, and Fruit Punch.

The products were found to contain metal bolts and washers. The company recalled all 59-oz cartons that were distributed. Moreover, Coca-Cola also recalled 12-oz coke cans over possible "foreign contaminants."

SWOT Analysis of Coca-Cola

Recommendations

Based on the above SWOT analysis of Coca-Cola, nosotros can conclude that Coca-Cola has a definitive market position in the soda manufacture. However, information technology is recommended to bring more innovative changes.

Some recommendations are explained as follows:

1. Stepping into the nutrient market – Coca-Cola needs to introduce new products in snacks and food segments.
2. Focusing on health-related matters – Information technology should bring some solution to address the rising health concerns from social activists.
3. Improving its water direction organization and dealing with the criticisms from environmental agencies.
4. Expanding into developing countries with humid temperatures – At that place are many products of Coca-Cola like Fuze Tea, Dasani and Hi-C which aren't distributed in many developing countries. Coca-Cola needs to increase the distribution of such products.
5. Increasing the distribution of packaged drinking water like Kinley.
6. Working on sustainability and green marketing It can improve its brand paradigm in the marketplace.

Early on concluding year, Coca-Cola set an ambitious goal for itself: Collect and recycle the equivalent of every bottle or can information technology sells by 2030. Here's how it plans to deliver. https://t.co/J3HH9IUimX

— CNN (@CNN) March 14, 2019

 References & more information

1. Interbrand Ranking 2021. Best Global Brands: Coca-Cola . Interbrand
2. Johnston, M. (2020, June 1). 5 Companies Owned past Coca-Cola . Investopedia
3. Law360 (2020, April half-dozen). Fed. Circ. Weighs Undoing Coca-Cola Soda Dispenser IP Win . Law360
4. Nellis, S. (2020, April 27). Microsoft wins a five-year deal with Coca-Cola to supply concern software . Reuters
5. Win, 50. T. (2020, March 31). Bottling it? Plastic pollution from Coca-Cola, PepsiCo fuels emissions . Reuters
6. Scully, J. (2020, January 31). Coca-Cola'due south growth in 2019 driven by trademark Coke beverages . Food and Beverages
7. McCormick, Eastward. (2020, February 27). Coke and Pepsi sued for creating a plastic pollution 'nuisance .' The Guardian
8. Balu, N. (2020, April 21). Coronavirus lockdowns to injure Coca-Cola's 2d-quarter sales . Reuters
9. Beveled, K. (2020, January fifteen). Shifting Away from Sugar: What'due south the outlook in 2020 ? Food Navigator

 Tell us what you lot think? Did you find this article interesting? Share your thoughts and experiences in the comments section below.

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Source: https://bstrategyhub.com/swot-analysis-of-coca-cola-2019-coca-cola-swot-analysis/

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