Coca-Cola SWOT Analysis
“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and
the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely
used technique through which managers create a quick overview of a company’s
strategic situation. The technique is based on the assumption that an effective strategy
derives from a sound “fit” between a firm’s internal resources (strengths and
weaknesses) and its external situation (opportunities and threats). A good fit maximizes
a firm’s strengths and opportunities and minimizes its weaknesses and threats.
Accurately applied, this simple assumption has powerful implications for the design of a
successful strategy.”
Coca-Cola
The Coca-Cola Company (TCCC) is a leading manufacturer, distributor
and marketer of non-alcoholic beverage concentrates and syrups, in the US.
TCCC has a strong brand name and brand portfolio. Business-Week and
Interbrand, a branding consultancy, recognized Coca Cola as the number one
brand in their top 100 global brands ranking in 2007. The Business WeekInterbrand valued Coca Cola brand at $65,324 million in 2007. TCCC ranks well
ahead of its close competitor, Pepsi, which was ranked 22 with a brand value of
$12,888 million. The company's strong brand value facilitates customer recall
and allows Coca-Cola to penetrate markets. However, the company is
threatened by intense competition, which could have an adverse impact on the
company's market share.
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Coca-Cola SWOT Analysis
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor
TYPE OF FACTOR
Favorable
Internal
Strengths
Unfavorable
Weaknesses
¾ World’s leading brand
¾ Sluggish
¾ Large scale of
performance in
operations
North America
¾ Strong revenue growth
External
Opportunities
¾ Growing bottled water
market
¾ Growing Hispanic
population in the US
¾ Acquisitions
Threats
¾ Intense competition
¾ Dependence on
bottling partners
¾ Sluggish growth of
carbonated
beverages
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