Coca Cola SWOT Analysis

About the company

Brief History
The Coca-Cola Companys humble beginnings can be traced back from John
Pembertons desire to cure his morphine addiction. To come up with a cure, he experimented
with coca and coca vines. This experiment resulted to the creation of his version of Vin Mariani,
a French tonic wine. Pemberton was later forced by a temperance movement (a social
movement urging personal moderation in the consumption of alcoholic beverages.) to produce a
non-alcoholic alternative to his wine. While seeking an alternative recipe, Pemberton
accidentally mixed his base syrup to a carbonated water. He later decided to sell it as a fountain
drink which is now known as the Coke.
After Pembertons invention hit the market, he who was still addicted to morphine fell ill
and was left impoverished. As a result, he was forced to sell his patent to his business partners.
Including Asa Griggs Candler, who in turn aggressively marketed Pembertons invention. It can
therefore be concluded that while Cokes invention is attributed to John Pemberton, it was
actually through Asa Griggs Candlers marketing efforts that lead to its success.
Coke was introduced to the Philippines in 1912, when an American businessman named
M.A. Clarke opened the first documented soda fountain in Manila. He later opened the first
bottling plant in the Philippines, which was also the first in Asia.
Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our business
by describing what we need to accomplish in order to continue achieving sustainable, quality
growth.
People: Be a great place to work where people are inspired to be the best they can be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
Productivity: Be a highly effective, lean and fast-moving organization.
Mission
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company
and serves as the standard against which we weigh our actions and decisions.
To refresh the world...
To inspire moments of optimism and happiness...
To create value and make a difference.












The SWOT Analysis

I. STRENGTHS
Large Market Share
With its dominance in the soft drink market, Coca Cola is known as the best global brand in
terms of value, having the largest market share in its field. Coca Cola also has a strong grasp
in its marketing and advertising, allotting a large amount for its marketing.
Loyal Consumer Groups
The company also has one of the most loyal consumer groups, with consumers also supporting
other products under the company brand simply because they have high regards for the brand.
Bottling Network
One of the companys strengths is also its trade secrets. Coke distributes its concentrate that it
sells to its licensed bottlers throughout the world. It also has a strong bottling network, having
partnerships with 275 bottling companies that allow it to distribute its products all over the world.
This network also considers the different tastes and preferences of each culture, creating
varying tastes to cater to them.
Socially Responsible
Coca cola also focuses on its programs promoting Corporate Social Responsibility like
recycling, energy conservation, active healthy living, water conservation which boosts the
company image towards the public





II. WEAKNESSES
Truly, the Coca-Cola Company has innumerable strengths manifested in the years it had
stood strong through economic changes and preference shifts of its consumers, withstanding
the test of time. Then again, even if we strive to achieve perfection, there will always be a thing
that will never change---imperfection. Whether we admit it or not, the Coca-Cola Company does
have its weaknesses.

Product Development Issues
On one hand, product development can be viewed as strength of the company because of the
various soft drink flavors they offer, but on the other hand, it can also be viewed as a weakness.
Products offered by the Coca-Cola Company is, needless to say, unhealthy because of the high
sugar contain they contain which when consumed in excessive amount may lead to dire health
issues. Since todays market trend is shifting to healthier alternatives and with the world doing
its best to combat obesity, Coca-Cola may lose customers, and eventually, sales, in the future.
Undiversified Product Portfolio
While many of its competitors have ventured on new and different products, Coca-Cola still
focuses on selling carbonated beverages, and their popular drink is COKE. This puts the firm at
a disadvantage. Nowadays, consumption of carbonated drinks is stagnating and consumers are
moving towards healthier drinks.
Negative Publicity
There are individuals who are against Coca Cola and the products they produce, especially
Coke. People will have their opinions, like Coca cola being criticized for high water consumption
in water scarce regions and using harmful ingredients to produce its drinks.
Brand Failures
With more than 500 brands currently being sold in the market, only a few (namely Coke, etc.) of
these brands have sales up to $1billion. The firm is also unsuccessful in its introduction of new
beverages.

III. OPPORTUNITIES
Although Coke has established many successful products, it still has a lot of
opportunities that it can pursue.
Product Innovation
Since many people are becoming more conscious regarding their health and lifestyle, Coke has
the opportunity to develop products that adhere to the increase in demand for low-calorie and
low-sugar drinks. It can also broaden its product line by adding snacks to their portfolio.
Expansion
Since there are emerging markets like China and India that Coke hasnt even tried to enter and
dominate, this could bring Coke a huge opportunity to expand and outwit its competitors.
Other Product Opportunities
Another opportunity that it can pursue is through advertising its less popular products. Since
advertisements play as one of the best assets of Coke that make its brand very popular to the
masses, selling these less popular products can bring more profits to the company.

Larger Market Share
With Cokes huge influence in the industry, it can maintain its growth and even further penetrate
new market through acquisitions. This can minimize threats of growing competition and could
bring Coke an even larger share of the market.






IV. THREATS
Consumer Tastes
One of the foremost threats Coca-Cola is facing is the change of consumer tastes. Nowadays,
consumers are becoming more health conscious and are starting to reduce their consumption of
carbonated drinks since they constitute large amounts of sugar, calories and fat.
Water Scarcity
Water is becoming scarcer around the world, thus increasing both the costs and criticisms for
Coca Cola over the large amounts of water used in its production.
Tax Impositions
Some selected states have imposed taxes on the sale of soft drinks, and have banned the sale
of drinks larger than a certain size, trying to battle obesity, specifically in the United States.
Because of these regulations, the sales of Coca-Cola had been greatly affected, and their
market is becoming smaller and smaller

V. ACTION
With a total decline of 2.40% in the Sales Growth, a 4.80% decline in Income Growth, and a
3.60% decline in EPS (Earnings per Share) this year, Coca-Cola raised a lot of eyebrows from
its investors. Coca-Colas market share has been consistent for many years, but for these past
2 years, Coca-Cola experienced tepid declines in sales.
This decline in sales is mainly caused by the publics view on the beverage, aggravated by
social media, as an unhealthy drink. For this reason, Coca-Cola needs to focus on other
aspects aside from nutrition as the flagship product is indeed unhealthy.
To remedy the situation, Coca-Cola must come-up with a marketing strategy that diverts the
consumers minds from its health effects. Coke must be presented as a luxury good, or a feel-
good beverage, thus making it a tool to lighten the mood of its consumers.
Coca-Cola may also consider strengthening its advertising for its actions in upholding its
corporate social responsibility. With Coke being an established brand, good publicity of the
company can only do good to its sales.
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ompetition