Carrying out a SWOTT is an imperative step for the new business model. The SWOT analysis is an acronym for Strength, Weaknesses, Opportunities, and Threats. It is a business model that a company uses to identify the four facets as mentioned above gleaned towards the business strategy (Pahl & Richter, 2009). Through using this paradigm, the new invention, service delivery, will be evaluated in the context of Coca cola’s strength and weaknesses, and from identifying the opportunities and the threats ahead.
| Strengths | To date, the coca- cola company is still widely recognized across the globe. The company stands out from the others based on its signature logo, red and white colors, which reason-nates well with the consumers of all ages. Markedly, the company is one of the best, if not the best, beverage producer in the industry (Dudurskiv, 2017). That said, the new business will easily maneuver the industry further reaching more customers and consumers. Additionally, the Coca-Cola company has a robust distribution network across the globe. To date, the company avails its products to more than 200 countries while reaching millions of customers. This system enables the company to closely manage its costs and rapidly distribute its products in different geographical locations. Notably, the coca cola company has able leaders who ensure that the daily company activities align with the business mission and vision (Dudurskiv, 2017). They bring forth cutting edge strategies through strategic leadership to meet its responsibility to the respective stakeholders. On the other end, the company understands that technology is central to product quality. As such, it has widely invested in the latest technology in its product life cycle of production. Particularly, intellectual property is another added strength for the Coca-Cola company because it has patented all its products and this explicates why no other company has managed to replicate its products. Thus, the new business model will align with the strengths of the organization. |
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Weaknesses |
The Coca-Cola company faces several challenges within its skeleton. Water management is one of the imperative aspects which also doubles as the main ingredient in substantially all the products. Across the globe, water continues to be a defining factor for many companies involved in the production. There are several reasons that are causing water shortages, including increased pollution, poor management, and effects stemming from climate challenge. The impetus of this issue, the coco cola company prospects expose slim chances that could adversely affect the company’s profitability or net operating revenues in the long run (Dudurskiv, 2017). Remarkably, the company has also been behind innovation. The Coca-Cola company has invested in five leading brands, including Dasani as the mineral water, Coke, Fanta, coke zero, and sprite. However, there has been no significant improvement regarding new products because the company only sells distinguishing products. |
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Opportunities |
Moving forward, it is important to align the new business model with opportunities to be ahead of the competition. Environmental concern in the age of post-industrial world presents great opportunities for the Coca-Cola company (Dudurskiv, 2017). Global warming is one critical issue that affects the environment today. This element is brought by the rise of carbon foot print in the atmosphere that causes high temperatures and unpredictable weather patterns. Regardless of there being high temperatures, the company can turn this down-side effect to suit the new business model and consequently increase the sales and profits of their products. Therefore, the company could focus on moving into developing countries with high temperatures. As such, the people will be able to experience the refreshing taste of Coca-Cola products thus increasing customer loyalty which will later reflect in the revenue generated from the sales. Accordingly, the company can also integrate diversification to include other products that complement inherent drinks, for example, snacks. This move will help to ensure that they get better revenue from existing products through cross- selling their products. Besides, developing nations offer a conducive environment for many businesses to set-up and operate their businesses because they avail favorable legal and regulatory environment. Thus, the business model will speed up sales as it provides a constructive framework that is customer centered. |
| Threats | The Coca-Cola products are at the hands of the Food and Drug Administration in the United States. Thus, the company has to meet the regulations given by the government to put products on the shelves. However, in several countries including Europe and the Middle- East countries, the sale of Coca-Cola products is prohibited because they are injurious to health, basing on obesity (Dudurskiv, 2017). However, Burma also dissociated itself from selling Coca-Cola products because the company utilizes water as its factor of production, which is scarce in the country. Additionally, indirect competitors continue to put pressure on Coca-Cola’s products. Coffee chains like Starbucks and Costa Coffee are on the rise and offer a healthy competition to the company’s carbonated drinks. While it may appear that the coffee shops do not give a big competition, they do give a dent to its beverage market. Therefore, these threats might significantly affect the new model of service delivery. |
| Trends | Finally, the current trends within the company’s scope of operation include changes in the industry. In other words, consumers are changing their taste from the carbonated products to healthy drinks that have less sugar (Dudurskiv, 2017). As such, the company should consider diversifying its products to accommodate more healthy beverages. |
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References
Dudovskiy, J. (2017). Coca Cola SWOT Analysis - Research Methodology . Research Methodology . Retrieved 20 June 2017, from http://research-methodology.net/coca-cola-swot-analysis/
Pahl, N. & Richter, A. (2009). SWOT Analysis- Idea, Methodology, and a Practical Approach GRIN Verlag
