The Swot Analysis of

Coca-Cola
Submitted by Submitted to
Navneet Akanasha Nirala
Pankaj
Lakshay
 THE SWOT

 Internal Strengths Weakness

Factors that give an edge for the company Factors that can be harmful of used against
over its competitors the firm by its competitors

 External Opportunities Threats

Favorable situations which can bring a Unfavorable situations which can
competitors advantage negatively affects the business
Strengths

 Brand Equity: coca cola is definitely one of the costliest brands with the highest brand
equity.
 Company Valuation: one of the most valuable companies in the world. Its brand equity
about 79.2 billion dollars. This valuation include the brand values, the factories, its assets
around the world and its operations cost and profit of coca cola.
 Largest Market Share: there are only two competitors in the beverages segment-PepsiCo an
coca cola. Out of the two coca cola is the clear winner and hence has the largest market
share.
 Customer Loyalty: with such strong product, it is natural that coca cola has a lot of
customer loyalty.
WEAKNESSES

 Product Diversification: Product Diversification is low. Where Pepsi has made a smart
move and diversified into the snacks segment with product Lays. Coca Cola is missing
from that segment. The segment is also a good revenue driver for Pepsi,these product
would have been an additional revenues for the companies.
 Supply Chain improvements : Supply chain can be a major cost sink hole with the
transportation cost always rising. Coca cola complete business is based on transportation
and distribution. Thus Coca cola should keep strict watch on its Supply chain and keep
improving to bring the cost down.
Opportunities

 Developing nation : Although developed nations have a high precence of Coca cola, these
country slowly moving towards healthy beverages. Countries like india in which are
developing and have a hot summer, find the consumption of cold drinks almost doubled
during summers. Thus the higher consumption in developing enviroment’s can be a good
opportunities to capitalize for coca cola.
 Market the lesser selling product: In the product portfolio of coca cola there are several
products which have not found acceptance in the market. Coca cola needs to concentreate
on the marketing of these product as well. It is understood that Coca cola has made several
expenses to launch these products. Thus, the marketing and subsequent rise of sale of these
products will help revenue of Coca cola.
threats

 PepsiCo Returns on Assets ratio and operating margins, which are both much higher than those
of Coca cola
 PepsiCo is a larger company than Coca-cola. In the most recent quqrter,the company has $64
billion revenues, almost twice those of Coca cola.
 Health consciousness amoungst people avoiding soft drinks can adevesily affected Coca cola
 Inflation, economics slowdown and instability
 Strong competition can lead to reduce market share.
 Indidrect competitons: coffee chain like starbucks, these chains offer a healthy competition to
Coca cola carbonated drinks. Similarly, health drinks like real and tropicana as well as energy
drinks like Red bull and power horse are stealing away the market share indirectly.