Strengths of Coca-Cola
-The largest market share-Out of the two biggest beverage competitors; Coca-cola and Pepsi, Coca-Cola enjoys the largest market share (Baah & Bohaker, 2015). Sprite, Coke, Fanta, Manza, Limca, and diet Coke has contributed significantly in the growth of Coca-Cola as the mainstream beverage company.
-Brand Equity-In 2011, the Coca-Cola company was awarded for having the highest brand equity. The company was given the award by having a unique brand identity.
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-Vast Global presence- The company enjoys her proximity in more than 200 countries globally. The company has capitalized on this fact by building a significant brand name.
-Excellent marketing Strategies-Unlike other beverage makers, the Coca-Cola company's marketing strategies have won people's hearts (Baah & Bohaker, 2015). Unlike other beverages, their brands are taken by people of all ages.
-Vast Distribution Network- A high demand for Coca-Cola products has made the company develop an extensive distribution network (Baah & Bohaker, 2015). This network has also helped the company to reach out to millions of customers globally.
-Company valuation-Coca Cola is one of the most valuable companies in the world. The company's valuation is around 79.2 billion dollars (Grant,2016). The assessment includes numerous factories, brand valued, profits generated by the company and assets.
Weaknesses of Coca-Cola
-Competition from other beverages-Pepsi is a major competitor of the Coca-Cola company.
Inadequate product diversification-Whereas Pepsi; her main competitor has diversified in the snack segment by introducing products like Kurkure and Lays, Coca-Cola has stagnated (Grant,2016). Diversification could have helped the Coca-cola company to generate more revenue.
-Lack of health awareness-Carbonated products has been cited as one of the causes of obesity. The Coca-Cola company is the largest manufacturer of carbonated products.
Coca Cola's Opportunities
-Developing nations-Given that developed countries are moving towards healthy beverages, Coca-Cola should shift its focus to the developing nations (Grant,2016). A country like India, consumption of cold drinks doubles during hot summers. Coca-cola can capitalize on this and expand its market in the developing world.
-Diversification-The Coca-cola company needs to diversify in the food and health products to increase its revenue
-Packaged drinking water-Hygiene has become a significant issue for water used for consumption. People prefer packaged water. The company, therefore, has a vast market opportunity for packaged water.
-Supply Chain Improvement- With the rising transportation costs, the Coca-cola company is spending a fortune to supply their consumers with their beverages. The company should improve the supply chain with a view of cutting down the cost of supply.
-Marketing the lesser Selling beverages-Coca Cola has some products that are not popular with consumers even after the company spend a lot when launching them. The company should concentrate on marketing these products to increase its revenues.
Threats Facing Coca-Cola
Inadequate Raw material-When making her beverages, the company consumes a lot of water. Climatic changes in various parts of the world have led to water scarcity (Grant,2016). The company is likely to incur significant losses as well as a downfall in the distribution capacity when there is limited water supply.
-Indirect Competitors- The company is facing stiff competition from coffee chains such as Costa coffee, Cafe' day, Starbucks, etc. These outlets offer healthy beverages compared to the carbonated drinks manufactured by the Coca-Cola company (Grant,2016). Health drinks such as Tropicana and Real, together with energy drinks such as Gatorade and Red bull are expanding their customer base, hence becoming significant competitors of Coca-Cola.
References
Baah, S., & Bohaker, L. (2015). The Coca-Cola Company . Culture, 16, 17.
Grant, R. M. (2016). Contemporary strategy analysis : Text and cases edition. John Wiley & Sons.
