Coca Cola: Basic SWOT Analyis

Essay by ifonlyiwasher September 2006

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Strengths

Out of the five leading soft drink brands being sold worldwide, the company produces and sells four of them .

Consumer loyalty to the company and its products remains high, evidenced by the high market acceptance for Coca-Cola's newly, introduced products.

The company's entrance into the sports drinks and juice and juice drinks segments has been successful.

Annual consumption of Coca-Cola's products has been increasing. Annual per-capita consumption of the company's products worldwide stood at about 32 servings in 1985, in 2005, the average consumption per capita was 77 servings

Weaknesses

Coca-Cola's sales have decreased to a certain extent by rumours about the company and its products from time to time. For example, the company's sales in the Middle East were affected by rumours alleging that Coca-Cola is a Jewish company and its trademark carries anti-Muslim messages.

Opportunities

Room for innovation by a reputed brand in healthy choice beverage market

Coca-Cola's products are being consumed, on an average, only 1.3

billion times a day. This presents immense opportunities for Coca-Cola to enhance its product penetration. Especially in countries not yet realizing these consumption levels, such as the large populations of China and India

Coca-Cola is expected to enter the freshly-brewed coffee and tea businesses, on a trial basis, under the banner, Far Coast.

Threats

Rise of healthy lifestyle choice, stemming from the rise of obesity worldwide, especially in children.

The restricted supply of one of its main ingredients - water and the rising cost of using this resource.