Coca Cola Essay

4388 Words Nov 21st, 2007 18 Pages
Swot Analysis For Coca-Cola

Here we will analyse the strengths, weaknesses, opportunities and threats for Coca-Cola. The strengths and weaknesses will be internal to Coca-cola and the opportunities and threats will be external to Coca-Cola.

Strengths Weaknesses

• Most recognized brand name in the world
• Various types of packaging
• Consumer loyalty
• Largest market share in the soft drinks market
• High sugar and caffeine content
• Declining trend in profits
• Some large retailers have exclusive contracts with Pepsi and don't stock Coke i.e. KFC
Opportunities Threats

• Expansion into third world countries where there is no current presence
• Healthy energy drinks i.e. to compete with Lucozade
• Middle east
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Coca-Cola Amatil also fits into both these strategies. They have a strong emphasis on protecting market share, reducing costs and efficiency. But are also involved in market research and product development.

Porter suggests four strategy types, cost leadership, differentiation, focus and stuck in the middle. Coca-Cola appeared to best fit the differentiation strategy, as they have an emphasis on being unique and brand images. Whereas, Coca-Cola Amatil has a focus strategy. The company is focused on reducing costs and increasing efficiency including specialising for their market.

Coca-Cola does not own its bottling companies. This helps keep a competitive edge. Secondly, this make exiting a market easier and allows access to the localised knowledge of these companies. While still owning large portions of the companies, Coca-Cola keep some control. If this was not the case, Coca-Cola's structure would also include a supply chain.

However, the two companies have different structures due to their different functions and geographical locations. They also differ due to the products they supply. Coca-Cola Amatil offers there market products that may not be available in other locations.

Background of Coca Cola

Coca cola was invented in May 1986 by Dr John Pemberton, a pharmacist from Atlanta Georgia who was investigating a formula to cue headaches. He mixed a caramel liquid with carbonated water and began selling it as

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