Swot Analysis Of Coca-Col SWOT Analysis For Coca Cola

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SWOT ANALYSIS FOR COKE
Strength:
1)Extensive beverage distribution:
Coke’ s success is base on distribution and transporation system. Since Coca Cola has been operating in more than 200 countires, one can claim that Coca Cola has the most extensive beverage distribution. The reason is because demand is very high. That’ s why Coca Cola can try varied distribution system to sell the product. Manual Distribution Centre, for example, is the system in populated areas of Africa. MDC’ s are independent businesses providing coke bottle only once it is purchased for the first time. Such different distribution systems can only be implemented if resources and vast presence of the company are good enough.
2)Customer loyalty:
Since Coke has it’ s own
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As one of the major factors among microenvironment, customer and their needs have to be understood really good. Along with another major factor of macroenvironment, culture shapes Coke’ s advertising in different countires. They were able to adapt to these different cultures and be able to create perception of happiness when consumed by customers. For example, one of the advertisement in Turkey shows a family around a table enjoying bayram as a special religious celebration in Turkey.
4)Consistent brand lines:
Alltough there are comments like Coca Cola should open up new brands in snack sector, the consistency that Coke has with Sprite or any other carbonated beverages provide the company with perception of being consistent in beverage sector. Though opening up brands in new sector could also make the company have profit.
5)Company valuation and vast global presence:
Coke has been present in more than 200 countries and being one of the most valued companies in the world, customers got used to with brand name and began to consume more. One triggered the other.
6)Nature
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Threats:
1)Rising competition with PepsiCo and local brands:
Since PepsiCo diversified its product category, it has gained a big advantage over Coca Cola. PepsiCo especially moved into food category and introduced many new brands. Moreover PepsiCo has been sponsor to one of the biggest sport organization and event NBA. Coca Cola in return made a contract with MLS. Coca Cola and PepsiCo therefore have been competing in marketing aspect and this affects the sales of Coke directly.
2)Raw material scarcity:
Water is the major raw material in Coke’ s production. Since the world has been undergoing water scarcity, this affects Coke’ s future of existence and forces Coca Cola to find a much more efficient way to comsume water.
3)Inflation:
Every company needs to set it’s price according to major factors in macroeconomic environment. Economy as being one of the most important factors, companies suffer from inflation and any other dolar change in economy. Coke has also tried to increase and reduce it’ s price

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