Swot Analysis

Topics: Coca-Cola, The Coca-Cola Company, Diet Coke Pages: 5 (1610 words) Published: February 11, 2013
SWOT Analysis of Coca-Cola Company

I.- Organizational History

Coca-Cola was invented in the late 19th century by John Perbenton from Atlanta, Georgia. and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886. In 1887, another Atlanta pharmacist and businessman Asa Candler bought the formula for Coca Cola. By the late 1890s, Coca Cola was one of America's most popular fountain drinks, largely due to Candler's aggressive marketing of the product. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet coke with others including: Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca- Cola Vanilla and special editions with lemon, lime or coffee. Coca-Cola is a soft drink sold in the stores, restaurants, and vending machines of more than 200 countries.

I I.- Strengths and Weaknesses

I would mention two strengths of Coca-Cola to be popularity and finance. Two of Coca-Cola weaknesses are lack of popularity of many of its brands and health issues.

A ) Popularity

Coca-Cola is an extremely recognizable company, the most popular and biggest-selling soft drink in history, as well as the best-known product world-wide. It`s logos and promos are shown on a variety of products and events, without doubt Coca-Cola is a word that is easily recognize all around the world. Another way Coca-Cola keeps their popularity is by their marketing philosophy “think globally, act locally”. The brand social acceptance and popularity makes people feel part of something big and unifying. The brand have kept their brand identity and image very consistent over the years. Even after introducing many different flavors, the brand’s promise of fun, freedom, refreshment and spirit remains consistent.

B) A Lot of Finance

Coca-Cola like many other businesses have had their ups and downs financially, but they have done well. The money the company is earning is substantially better than most beverage companies and all that money gets invested into their company so that they can improve. Coca-Cola also allows global participation in the parent companies, exposing investors to income derived from global operations as opposed to local operations. Coca-Cola headquarters in Atlanta, Georgia is a global food and beverage behemoth with a market capitalization of US $140 billion.

C ) Lack of Popularity of Many Coca-Cola Brands.

Coca-Cola has limited weakness but an aspect that could be viewed as a weakness is the lack of popularity of many Coca-Cola drinks. Many drinks that the company produces are extremely popular such as Coke and Diet Coke which has become a major diet cola. There are approximately 400 different drink types that have been introduced under the Coca-Cola brand name, such as Cherry Coke. There are also some drinks marketed by the company but which remain unaffiliated with Coca-Cola the drink, such as Sprite. The company has many successful brands that it should continue to pursue. They have the opportunity and money to advertise its less popular products and put this beverages in the market.

D ) Health Issues

Coca-Cola contains caffeine and caramel which can adverse effects on the teeth and with the continuous intake of sugar it creates an issue for health problems. Organic products are on the rise, with 70% of Americans having purchased something organic at least once. While organics are becoming more and more popular, Coca-Cola owns Minute Maid and Fruitopia, so if the new organic juices and sodas are a hit, it could potentially hurt the sales of their subsidiary products. Although Coke has never produced an organic product, they do own Odwalla, which is a natural juice company. This product would not be marketed...
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