Coca-Cola Analysis

Topics: Coca-Cola, The Coca-Cola Company, Diet Coke Pages: 7 (2073 words) Published: June 24, 2013
Contents
a.| Introduction| 2|
b.| SWOT Analysis| 2|
c.| Porter’s five-force model| 3|
d.| Porter’s Value Chain Analysis| 5|
e.| Conclusion| 7|
f. | Reference| 7|
| | |

Introduction:
The Coca-Cola Company is the largest manufacturer and marketer of nonalcoholic beverage in the world. The company produces finished product in cans and bottles. The bottlers then sell, distribute and merchandise the resulting Coca-Cola product to retail stores, vending machines, restaurants and food service distributors. Coca-Cola is the most popular and biggest-selling soft drink in history as well as the best-known product in the world. The Coca-Cola Company offers nearly 400 brands in over 200 countries. Throughout this paper we will analyze the competitive advantages of Coca-Cola Company through three analysis methods, including SWOT analysis, Porter’s five-force Model and Porter’s value chain analysis. SWOT Analysis:

SWOT stands for Strengths, weaknesses, Opportunities and Threats. SWOT analysis involves specifying the objective of the business venture and identifying the internal and external factors that are favorable and unfavorable to the company. SWOT analysis is important because they can prepare later steps in planning to achieve the objectives. When the decision makers identify the external factors, which are the threats and opportunities, they should realize the key success factors. When the decision makers identity the internal factors, which are strengths and weakness, they should realize the company’s distinctive competencies. Strategies can be easily formulated after identifying the key success factors and distinctive competencies. Strengths:

Coca-Cola is the most recognized brand name in the world. The product’s image has become a legend and many people have taken this image deeply in their hearts. Since the highly recognized branding, the consumers have a high loyalty to Coca-Cola. Containing various types of packaging is also one of their greatest strengths. It allows them to conduct business on a global scale while maintain a local approach at the same time. There are so many types of localized packaging and products. Besides the normal coke, they issue Coke Light and Coke Zero to claim they also emphasize people’s health. Weaknesses:

Coca-Cola is well-known that it contains high sugar. Continuous drinking of Coca-Cola may cause health problems such as decayed teeth and diabetes. With today’s constant shift to health products, some products could possibly loose customers. Opportunities:

Coca-Cola Company has tried to produce more healthy drinks since the people in the world are paying more attention to their health. The products, such as Coca-Cola Light and Coca-Cola Zero, contain less sugar and calories. The company should keep a balance on the taste and health on the products. The company can also put more effort and resources to expand the business into the third world countries as the market share is small there. Another opportunity is that Coca-Cola can buy out their competitors when they realize the competitors’ potential. This can turn the threats into opportunities and enhance the sources of revenue. Threats:

Despite the fact that Coca Cola dominates its market, there are still a lot of competitors in the market and they use different strategies to take more market shares from Coca-Cola. For example, Pepsi, which sells a very similar drink, has exclusive contracts with some large retailers, such as KFC, which don’t sell Coca-Cola. Moreover, people are constantly trying to change their eating and drinking habits nowadays due to the health and taste. People would realize Coca-Cola is not healthy or get bored with it and then change to other new drinks. This could directly affect the sale of Coca Cola’s products. Porter’s five-force model:

Porter’s five-force model is to help business enterprises enlarge their market share and their profit. This also makes organizations...
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