After engaging in thorough market research for Coca Cola Company, we have conducted a SWOT analysis of the firm as an industry, its operations, its customers and its competitors. Based on this information, we have put forth recommendations for the Company to improve over approximately the next 3 years.
The Coca Cola Company’s mission “is to create value and make a difference.” Coca Cola is the leading producer of soft drinks in the world. Anyone with a sweet tooth is a target for their brands that include Coca-Cola, Diet Coke, Coca-Cola Zero, Sprite, Fanta, Sprite, Powerade, and Minute Maid.
The Company engages in Corporate Social Responsibility in environmental initiatives aimed towards economic development. This factor contributes greatly to putting Coca Cola Company a step above its competitors. The biggest competitor for Coca Cola is Pepsi. Great news for Coca Cola is that in the last 6 months, Pepsi has seen a drop of 10% in sales. The world is gaining interest in healthy living, therefore, Coca-cola has invested in organic and dairy drinks. Unfortunately, their soft drinks have been said to contain high levels of sugar that pose health risks like obesity and diabetes. It’s obvious that you don’t have to walk far before you see a coca cola advertisement either on a billboard, a shirt, or a ball cap. Coca Cola Company has invested a lot of money in the US alone on advertising.
Coca Cola has had its fair share of weaknesses in relation to its brand image. Allegations related to labor and accusations of pesticide-heavy soft drinks productions in lesser developed countries have affected their brand over the years. The Company is generally viewed as a United States Corporation which benefits from the local market. This concept is generally portrayed by their local competitors.
Coca Cola takes advantage of new opportunities with other companies to increase sales. But, in the States, there has recently been tax charged on soda to discourage their consumption as a nonhealthy drink. More alarming is that other countries are following in this policy. Furthermore, as the world experiences degradation in climate changes, water resources are greatly affected thereby posing a threat to Coca Cola’s key ingredient, water.
Our recommendations based on Coca Cola’s SWOT analysis include the development of a marketing strategy using their strengths especially by the recent weakening of their major competitor Pepsi. As it is said, “the customer is always right.” Coca Cola needs to accommodate customer’s healthy lifestyle. In turn, this does not mean that it should venture into the new market haphazardly, instead of with great caution. A good way to test this market is to purchase distributing licenses from already set up Companies thereby reducing risks. Coca Cola needs to create custom made product promotions suited to a particular local market which will achieve better results for the Company.
In conclusion, a SWOT analysis is critical for a company that faces challenges in this growing world. Therefore, with this analysis and recommendations, Coca Cola is sure to maintain its position as the market leader in soft drink s in the world for a long time.
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