Swot analysis
Swot analysis is a technique that makes use of knowledge on the company's strengths, weaknesses, opportunities, and threats. Even though it is employed in corporate settings, it helps fill a long-term void in the market. Company SWOT analysis is beneficial in that it aids companies in identifying opportunities that the market needs to investigate. The key benefits of identifying the business's flaws are that they can be used to estimate the company's future. Threats found during the procedure are also eliminated by the company. The SWOT analysis is the topic of this paper. SWOT analysis of the Coca-Cola Company is the main goal of the article. The company deals in a brand that is common in offices, shops, and households.
Strengths
One of the strengths is brand awareness. The company is one of the famous businesses dealing in widely recognized brands in the world. The company has a signature that serves as a logo, with brand focusing to carter for all the ages. There are two major players in the beverage industry, the two being Coca-Cola and PepsiCo. The Coca-Cola Company is the leading brand by gaining more customers than the other brands.
The company also has robust distribution since it can make its products available in more than one hundred countries (Ovidijus, 2017). The company makes use of worldwide distributors and their independent bottlers as well as the retailers. The company thus efficiently manages its cost and make rapid introduction their products in the market. The strategy enables the company to exercise quality control and safety of their items.
Weaknesses
The company experiences a significant problem in water management (Kenneth, 2015). Water is the main ingredient that is used in making the Coca-Cola products since it's a vital raw material in the production process. The resource is also useful in serving the community served by the Coca-Cola. Water is a resource that is limited and scrambled in some parts of the world. The shortage causes overexploitation of the available resources. Both the exploitation of resources and water shortage causes pollution of the environment. The other weakness is a fluctuation of the foreign currency. The company carries out its activities using currencies other than the United States dollars. The company there is involved in the conversion of currency into U.S dollars at different currency rates affecting their finance at the end of every trading period. The conversion affects the net operating revenues.
Opportunities
The company offers diversity through the provision of different beverages and developing other beverage categories. The company offers a platform for new upcoming and developing products (Kenneth, 2015). The opportunity thus provides the company with the energy to grow their products and provide their clients with adequate supply. Through the development, the company can access their younger customer base. The other opportunity faced by the Coca-Cola Company is their extended reach to the clients. The company has invested in different product lines as a way of shifting towards healthier living. The company segments have developed to the capacity of producing other beverages other than the traditional drink.
Threats
There are indirect competitions posed by other companies (Kiesha, 2016). The competitors fail to practice direct competition but instead place a dent in the market share. The business chains are characterized by offering cheap customer alternatives that present unique choices and health. The franchises also efficiently provide the competitors with brand levels thus allowing the companies to deliver their beverages at a lower price. Quite a challenge has been faced in nutritious selections of the ingredients used by the company. A change towards the use of organic components has made many consumers opt for nutritional waters and other healthy drinks.
References
Kenneth J. DeFranco. (2015). The Coca-Cola Company: A Short SWOT Analysis.
Retrieved on 26 Oct 2017 from http://www.valueline.com/Stocks/Highlights/The_Coca-Cola_Company__A_Short_SWOT_Analysis.aspx
Kiesha Frue. (2016). SWOT Analysis of Coca-Cola. Retrieved on 26 Oct 2017
from http://pestleanalysis.com/swot-analysis-coca-cola/
Ovidijus Jurevicius. (2017). Coca-Cola SWOT Analysis 2017. Retrieved on 26 Oct
2017 from https://www.strategicmanagementinsight.com/swot-analyses/coca-cola-swot-analysis.html
