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Abhi Shreshtha SWOT ANALYSIS ON Coca-Cola - November 25th,

abhishreshthaa 2010

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Coca-Cola is a carbonated soft drink sold in the stores,
restaurants, and vending machines of more than 200
countries. It is produced by The Coca-Cola Company of
Atlanta, Georgia, and is often referred to simply as Coke (a
registered trademark of The Coca-Cola Company in the
United States since March 27, 1944). Originally intended as
a patent medicine when it was invented in the late 19th
century by John Pemberton, Coca-Cola was bought out by
businessman Asa Griggs Candler, whose marketing tactics
led Coke to its dominance of the world soft-drink market
throughout the 20th century.

The company produces concentrate, which is then sold to

licensed Coca-Cola bottlers throughout the world. The
bottlers, who hold territorially exclusive contracts with the
company, produce finished product in cans and bottles from
the concentrate in combination with filtered water and
sweeteners. The bottlers then sell, distribute and
Operations Manager at Management Paradise merchandise Coca-Cola to retail stores and vending
machines. Such bottlers include Coca-Cola Enterprises,
which is the largest single Coca-Cola bottler in North
America and western Europe. The Coca-Cola Company also
sells concentrate for soda fountains to major restaurants
MP Guru and food service distributors.
 
Institute: VIDYAVARDHINIS COLLEGE OF
The Coca-Cola Company has, on occasion, introduced other
ENGINEERING AND TECHNOLOGY
cola drinks under the Coke brand name. The most common
Status: Offline of these is Diet Coke, with others including Caffeine-Free
Posts: 6,972 Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry,
Join Date: May 2010 Coca-Cola Zero, Coca-Cola Vanilla, and special editions with
lemon, lime or coffee.

In response to consumer insistence on a more natural

product, the company is in the process of phasing out E211,
or sodium benzoate, the controversial additive used in Diet
Coke and linked to DNA damage in yeast cells and
hyperactivity in children. The company has stated that it
plans to remove E211 from its other products, including
Sprite and Oasis, as soon as a satisfactory alternative is
found.

Strengths

World’s leading brand

Large scale of operations
Robust revenue growth in three segment
Strong international branding
Diverse range of products (eg: Diet Coke, Vanilla Coke,
Cherry Coke, Coke Zero etc)

Weaknesses
Negative publicity
Sluggish performance in North America
Decline in cash from operating activities
Not aggressive product development and diversification
Pepsi issued a challenge to coke, known as the Pepsi
challenge. As part of the challenge, participants were
blindfolded and given the chance to taste both coke and
Pepsi. The average participant chose Coke most of the time.
Therefore this is more of a strenth

Opportunities

Acquisitions Intense competition

Growing bottled water market
Growing Hispanic population in US
Diversify into new lines of products

Threats
Intense competition
Dependence on bottling partners
Sluggish growth of carbonated beverages
New and fierce competition may arise
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