Introduction
Coca-Cola Company is the leader in the market for soft drinks. It was founded in 1886 and became a manufacturer of iconic glass and other products (“Our company,” n.d.). To examine its current situation, SWOT analysis can be applied. It is a strategic tool for identifying strengths, weaknesses, opportunities, and threats for guiding enterprises (Parsons, 2021). Therefore, this paper aims to analyze the company’s position to propose a SMART objective.
SWOT Analysis: Future Development
The situation of Coca-Cola Company is defined by numerous factors. Its strengths are a strong brand and a significant market share (“Coca-Cola’s growth potential & market share,” 2017). The weaknesses include low diversification and competition with Pepsi (MacMillan and McGraith, 1997; Gutierrez, 2021). The opportunities are the capacity to introduce new products alongside soft drinks and remain competitive (“Brands,” 2021). The threats are posed by non-compliance with sustainability goals concerning water consumption (MacDonald, 2018). Thus, the new market opportunity is developing offers for differentiation based on the identified strength because the company has a favorable image for this initiative.
Strengths, Mission, Goals, and SMART Objective
The specified direction correlates with Coca-Cola Company’s mission and goals. It strives to create products corresponding to varying customers’ needs, which means that this strategy fits the statement (“Purpose and vision,” 2021). The SMART objective should be: to introduce one unique product by September 2021 to generate 10% revenue within two months. For example, Lush’s similar differentiation initiative focused on global culture significantly increased its popularity (Herosmyth Staff, 2020; Cleveland, Papadopoulos, and Laroche, 2011). Due to the same conditions, Coca-Cola’s plan will be profitable.
Conclusion
To summarize, SWOT analysis showed that Coca-Cola Company’s position is favorable for the suggested differentiation. The strong brand of the manufacturer, the current market share, and the capacity to remain competitive regardless of challenges allow a conclusion on its feasibility. As a result, the developed SMART objective might increase profitability, and this outcome is confirmed by the experience of other companies under the same circumstances.
Reference List
Brands (2021) Web.
Cleveland, M., Papadopoulos, N. and Laroche, M. (2011) ‘Identity, demographics, and consumer behaviors: International market segmentation across product categories’, International Marketing Review, 28(3), pp. 244-266.
Coca-Cola’s growth potential & market share (2017) Web.
Gutierrez, C. Coke vs. Pepsi: the 2021 Cola wars. Web.
Herosmyth Staff. (2020) 9 perfect brand examples of why it pays to differentiate. Web.
MacDonald, C. (2018) Coke claims to give back as much water as it uses. An investigation shows it isn’t even close. Web.
MacMillan, I.C. and McGrath, R.G. (1997) Discovering new points of differentiation’, Harvard Business Review, 75(4), pp.133-142. Web.
Parsons, N. (2021) What is a SWOT analysis and how to do it right (with examples). Web.
Purpose and vision (2021) Web.
Our company (2021) Web.