The Coca-Cola Company is one of the most renowned brands in the world. The Coca-Cola brand is valued at $84 billion; the company controls 35% of the North American soft drink market and operates over 900 bottling plants worldwide (Gaille, 2021). Coca-Cola finished the 2020 fiscal year with $33 billion net operating revenues and reached $235,9 billion in market capitalization (The Coca-Cola Company, 2020). Below is the SWOT analysis of this famous brand, which underlines its strengths, weaknesses, opportunities, and possible threats.
Strengths
- Brand value; Coca-Cola brand generates from $6 to $8 billion annual net income (Farooq, 2019);
- Wide audience reach; Coca-Cola serves an astonishing 1,9 billion servings daily (Jurevicius, 2020);
- Strong distribution network; Coca-Cola has around 250 bottling partners and a robust chain of suppliers, which contribute to the brand’s presence (SWOT & PESTLE.com, 2020)
Weaknesses
- Water management; Coca-Cola uses significant water resources in production, which raises environmental concerns (The Strategy Watch, 2020);
- Health problems; Coca-Cola is constantly under pressure from health experts because carbonated drinks negatively affect diabetes and obesity rates (Parker, 2020)
- Rivalry with Pepsi Co; while extra options are great for the customers, Coca-Cola has to withstand a very challenging competition (Biznews, 2020)
Opportunities
- Expansion with drinking water; Coca-Cola can use the segment of packaged drinking water to bring healthier drinks to the market and mitigate health-related criticism (Parker, 2020)
- Promotion of lesser selling brands; Coca-Cola can focus marketing efforts on improving the sales of their secondary brands (Bhasin, 2019)
Threats
- Packaging controversy; Coca-Cola has to improve the recycling process of their single-use plastic bottles to satisfy environment protection groups and regulations (WiseLancer, 2020);
- The increasing value of water; as freshwater sources become threatened, Coca-Cola might face a severe increase in production costs (Gaille, 2021)
Overall, The Coca-Cola Company might face several challenges in the future, the most significant being environmental sustainability pressure and the possibility of production costs growth. However, its popularity and strong position on the market provides Coca-Cola with a solid ground for withstanding the challenges of our time. The company can study and use business opportunities without rushing and utilize multiple ways to stay ahead of competitors.
Reference List
Bhasin, H. SWOT of Coca Cola (2019) Web.
Biznews. In-depth SWOT analysis of Coca-Cola | Strengths, weaknesses, opportunities & threats (2020) Web.
Farooq, U. Coca Cola SWOT analysis (2019) Web.
Gaille, B. Coca-Cola SWOT analysis matrix: opportunities and weaknesses (2021) Web.
Jurevicius, O. SWOT analysis of Coca Cola (6 Key Strengths in 2020) (2020) Web.
Parker, B. Coca Cola SWOT analysis 2020 | SWOT analysis of Coca Cola. Web.
SWOT & PESTLE.com. The Coca-Cola Company SWOT & PESTLE analysis (2020). Web.
The Coca Cola Company. 2020 business & environmental, social and governance report. Web.
The Strategy Watch. SWOT analysis of Coca Cola (2020). Web.
WiseLancer. SWOT analysis of Coca Cola | Coca Cola SWOT analysis (2020). Web.