Coca Cola SWOT Analysis 2021

Coca Cola SWOT Analysis 2021

SWOT is a term used to describe strengths, weaknesses-threats, opportunities, and strengths. It is a kind of analysis that is utilized to enhance competitive advantages. 

When you perform a SWOT analysis, you conduct a SWOT assessment, you figure the strengths of the firm, and the weaknesses of the company, in the event that it has any. you discover the potential for the company and potential threats for the business.

Coca-Cola is an international company that has numerous renowned brands that have been served to the world for many years. 

Coca-cola is the most renowned non-alcoholic beverage producer worldwide, serving its diverse brands for more than 100 years. 

It has served more than 200 countries through more than 550 brands, including tea, orange juice carbonated drinks, and sports energy drinks.

Coca-cola was invented by Dr. Johns Pemberton in Atlanta, in the year 1886. Pemberton was also the inventor of the product. 

In addition, Coca-cola operates franchises in which the syrup is offered by Coca-Cola and then sells it to franchisees.

Coca Cola SWOT Analysis

Company Background

Key Facts
Name The Coca-Cola Company
Founded May 8, 1886
Logo
Industries served Beverage
Geographical areas that are served All over the world (more than 200 different countries)
Headquarters Atlanta, Georgia, United States
Current CEO James Quincey
Revenue (US$) 35.410 billion (2017) 15.4 percent decrease from 41.863 billion (2016)
Profit (US$) 1.182 billion (2017) 81.9% decline in comparison to 6.527 billion (2016)
Employees 61,800 (2018)
Main Competitors PepsiCo Inc., Dr. Pepper Snapple Group, Inc., Unilever Group, Mondelez International, Inc., Groupe Danone, Kraft Foods Inc., Nestle S.A. and numerous other beverage companies.

SWOT Analysis of Coca Cola

Coca-Cola Strengths

Coca Cola SWOT Analysis

  • Strong brand identityCoca-Cola is a wildly popular brand with its own distinctive brand image. The soft drinks it makes are the top-selling drinks of all time.

  • The highest brand equity – Coca-Cola is, without doubt, one of the most well-known brands that have the most brand equity. It’s listed as the 5th in the world’s top brands in 2019, just behind Microsoft as well as above Samsung according to Interbrand. 
  • Expanded global coverage It is sold in over 200 different countries including nine billion meals every day of the Products of the company. It has launched over 500 new products around the world. Many of them are variations of Coca-Cola beverages, such as Coco-Cola Vanilla and Cherry Coca-Cola. These brands are known for their impact on every demographic and style of living.
  • Greatest brand association and customer loyalty – Coca-Cola is considered one of the US’s most emotionally connected brands. The brand’s value is closely associated with ‘ happiness‘ and has a solid customer base. Customers are able to quickly recognize their personal preferences. It isn’t easy to find alternatives for them. Furthermore, Coca-Cola and Fanta have an enormous fan base over other brands in the business.
  • Largest Brand Value –Coca-Cola is listed as the sixth most important brand globally according to Forbes 2019’s Ranking. With an estimated worth in the range of $59.2 billion, Coca-Cola increased six positions over the previous year. 
  • dominant market shareOut Of Coca-Cola and Pepsi as the two major producers of soft drinks within the beverage sector, Coca-Cola has the largest market share. Coke, Sprite, Diet Coke, Fanta, Limca Maaza, and Sprite are the top growth engines for Coca-Cola.
  • Unparalleled distribution systemCoca-Cola is one of the largest and extensive distribution networks in the world. The company has more than 250 bottling partners across the globe.
  • acquisitionsCoca-Cola has a lengthy list of profitable and strategic acquisitions, including Costa cafe chain, Luze Tea, AdeS, and many others. By acquiring these companies, Coca-Cola expanded its ready-to-drink beverage selection. 

Coca-Cola Weaknesses

Coca Cola SWOT Analysis

  • Coca-Cola Company is unable to demonstrate sustainable practices. Coca-Cola Company fails to demonstrate sustainable methods of operation.
    The Coca-Cola Company’s dependence on single-use bottles has resulted in it being called among the world’s top polluters. This, along with its reliance on water sources, has been not good for its reputation. There’s a great opportunity that could be a great opportunity for The Coca-Cola Company to strengthen its commitment to sustainable production which would be beneficial to its image.

45.2 percent of Coca-Cola’s beverage range is packed in PET bottles. (Statista)

  • Coca-Cola Company faces stiff competition.
    The Coca-Cola Company faces direct competition in the carbonated soft drinks category, and indirect competition from hot drinks, water in bottles as well as nutritional beverages. In addition, The Coca-Cola Company continues to fight competition from its biggest institutional rival, The Pepsi-Co. This competition has earned its own brand name: The Cola Wars.

Pepsi-Co boasts a market cap of $188.6 billion while The Coca-Cola Company has a market capitalization of $185.8 billion. (Investopedia)

  • While Coca-Cola offers a variety of drinks available, however, it has not expanded into other markets.
    Contrary to its primary rival, The Coca-Cola Company has been unsuccessful in its attempts to break into other industries besides that of drinks. The competitors have ventured into a variety of sectors, like PepsiCo’s move into the snack industry, and have helped diversify its product offerings away from the market for carbonated beverages. Expanding beyond beverages can aid in helping Coca-Cola consolidate its position as a market leader.

The Coca-Cola Company owns more than 500 beverage brands across the globe. (The Coca-Cola Company).

  • The nutritional value of the products made by The Coca-Cola Company is a major reason why customers leave the business.
    It is true that the Coca-Cola Company has indeed attempted to create products similar to Cola which contain lower sugar levels, no sugar, and sugar substitute products, however, its image remains stuck as an unhealthy drink. These efforts have led to the development of products such as TAB or Coke Life, which replace sugar with Stevia, which is regarded as healthier. Incredibly, these include among the ones The Coca-Cola Company decided to remove recently to simplify its operations.

A 12-ounce bottle of Coca-Cola includes ten teaspoons of sugar. (Very Well Fit).

  • To reach every corner of the globe To reach all corners of the globe, The Coca-Cola Company has high distribution expenses.
    To make sure the products of Coca-Cola are sold throughout the more than 200 countries that offer Coca-Cola products, Coca-Cola runs an extremely complex process of supply chains. The business model of the Coca-Cola Company is based on independent bottling companies which mix carbonated water into the syrup provided through The Coca-Cola Company. The bottles that are filled are delivered to the regions and customers to fulfill orders. In this method, the actual bottling process is carried out by the bottling partner, while the creation and distribution are handled by the business itself.

The Coca-Cola Company distributes over 3,500 different beverages to more than 200 nations. (Market.US)

  • Water is an essential ingredient for Coca-Cola and it is getting increasingly valuable.
    Water is regarded as a major national resource, and important to strategic importance to numerous nations. Coca-Cola’s production is extremely water-intensive, with 100 liters of product needing ninety-one liters of water to make. The environmental impacts of water use and the need to protect the environment gain significance, the Coca-Cola Company will need to be aware of the water use throughout its manufacturing process.

The Coca-Cola Company uses 295 billion milliliters of water for its business activities each year. (Statista)

Coca-Cola Opportunities

Coca Cola SWOT Analysis

  • Diversification The diversification in the food and health industry will enhance the offering of Coca Coke to its customers. It will also ensure that they make more money from their existing customers through cross-selling the products. It is also possible that the chain of the supply chain that distributes their beverages could also distribute snacks, thereby sharing the burden of supply chain expenses.
  • Countries in the developing world – Even though developed countries are awash in Coca coke, these countries are slowly moving towards healthier drinks. But, developing nations are still getting introduced to the pleasures of carbonated beverages and soft drinks. Countries such as India which is developing and enjoying an extremely hot summer, discover that how much consumption of chilled drinks nearly tripled in summer. This means that the greater consumption of cold drinks in the developing world could be an excellent chance to make money from Coca coca.
  • packaged drinking water In the present, hygiene is an important aspect of drinking water, packaged drinking water has made its way into the consciousness of many. Coca-Cola is a prominent player in the water that is packed segment however it is not Kinley. While Kinley’s growth is slow at present, Kinley has a huge possibility of growth. Therefore, Coca-cola as a company should be focused on the growth of Kinley as an organization and move it with Bisleri levels of confidence.
  • Improvement of the supply chain improvement is often a major cost drain, with costs of transportation constantly rising. Coca-cola’s entire business model is dependent on distribution and transportation. There is always the possibility of improvements in this sector. Therefore Coca-Cola should keep an eye on its supply chain and continue developing to bring costs down.
  • Market less popular products In the collection of Coca coca-cola There are many products that haven’t found acceptance in the marketplace. Coca-Cola needs to concentrate on marketing these products too. It is known that Coca-Cola has put in many expenses in order to introduce these products. Therefore, the advertising and the subsequent growth of sales of these products can boost revenue for Coca coca-cola.

Coca-Cola Threats 

Coca Cola SWOT Analysis

  • Competition is high: Coca-Cola’s major competitor is Pepsi. Other brands on the market are indirect competitors and can affect their position in the market. The indirect competitors include Starbucks, Costa Coffee, Red Bull, Nestle, etc.
  • Global uncertainty caused by Covid: Covid- 19-related shop lockdowns have adversely affected the sales of the business in many areas of the globe in the year 2020. Also in 2021, Coca- Cola expects to see a decrease in sales in certain countries like India due to the tense circumstances in that country as a result of the exacerbation of covid 19 deaths and the restrictions,

Job cuts: Making workers redundant suggests that the company anticipates an increase in demand, particularly because of co-infection. Covid pandemic. For 2020, Covid has stated that it would reduce the number of jobs by 2200worldwide.

FAQ

What is SWOT analysis of Coca-Cola?

The Coca-Cola SWOT analysis shows how the company which owns among the top recognizable brands ever created utilized its advantages in competition to become the second-largest beverage producer. It highlights the main strengths potentials, weaknesses, opportunities, and threats that impact the business the most.

What is a weakness of Coca-Cola?

Competitiveness with Pepsi Competitiveness with Pepsi Pepsi is the most powerful competitor of Coca-Cola. If it weren’t for Pepsi, Coca-Cola would have been the market’s top beverage. Diversification of the product Coca-Cola is not a great product for diversification.

What is the strengths of Coca-Cola?

The Coca-Cola Company is the largest non-alcoholic beverage business worldwide. It provides 1.9 billion, or 3.2 percent of the 60 billion drinks that are consumed every day. The company is the sole owner, distributor, and sells over 500 diverse non-alcoholic beverage brands across more than 200 countries.

What is Coca-Cola’s competitive advantage?

The aim that is the goal of Coca-Cola is to target every single consumer in the nation so Coca-Cola sets its prices at a level that is unattainable by competitors to its customers. Furthermore, Coca-Cola always charges the same price that is being offered by its rivals. This is a strategy that gives them an advantage in the market for beverages.

Who are the competitors of Coca-Cola?

Its Coca-Cola Company competitors include Red Bull, PepsiCo, Keurig Dr. Pepper, Tetra Pak, and Soylent. Coca-Cola Company ranks 2nd in the world. Coca-Cola Company ranks 2nd in Quality Score for its product on Comparably against its competitors.

Why is Coca-Cola so successful?

The main reason for Coca-Cola’s popularity is its focus on branding over the product. Coke doesn’t market drinks in bottles It sells “happiness” in a bottle. In fact, Coke aims to sell customers the experience and lifestyle that goes by its label.

How did Coca-Cola become popular?

When Georgia investor Asa Griggs Candler was named co-owner of Coca-Cola in 1888 The company’s founder began to work towards making Coke the most popular beverage through partnerships and marketing in local bottlers. In the year 1915 Candler had lost its market share to hundreds of competitors.

Conclusion

Although the challenges that are facing Coca-Cola are numerous, the company has a chance of a bright future. 

The company’s size as well as its leverage and financial resources are the potential to make use of lucrative acquisition goals. 

Furthermore, the brand’s popularity and fan base ensure that it’ll remain an elite beverage supplier in the future. 

Coca-Cola’s huge distribution network should ensure greater volumes in the future and success in rapidly growing markets. 

Overall, investors who are conservative and looking for a reliable source of income as well as a little capital gains risk might consider giving the Coca-Cola Company a glance.

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