Research and Describe Coca-Cola Company SWOT Analysis (Research Paper Sample)

Coca-Cola Company SWOT Analysis
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Introduction
Every day we enjoy the product of Coca-Cola and this has been happening since 1886. It is estimated that around 1.7 million Coca-Cola non-alcoholic products are consumed daily around the globe. The Coca-Cola Company is a successful multinational food and beverage business. Coca-Cola Company is the number 1 beverage firm, outstanding distributor and renowned marketer of non-alcoholic products around the globe. American based corporation and headquartered in Atlanta, Georgia and her current top leader is Muhtar Kent. SWOT analysis a business tool adopted by varied firms to evaluate or gauge business strengths, weaknesses, opportunities facing the business and those important threats pose to the organization (Kendler .,et. al 2010.,p. 465-468). Upon critically looking in depth of organizational goal or aim to be achieved, there is need to adopt a SWOT analysis. This includes looking in detail the weakness and strengths bestowed to a company, study the internal factors of the company. Secondly is to have the opportunities considered with every threat analyzed and dealt with strong terms possible. For instance, the strength of competition needs to be counter checked and analyzed (……………).
Mission statement
The company’s mission and vision postulates who they are, what they are advocating, and the methodologies on how to achieve. It gives the company a sense of direction and makes all the proponents work closely to the attainment of stated goals. The mission entails;
* To refresh the world…
* To inspire moments of optimism and happiness…
* To create value and make a difference.
This mission is essentials as it creates a roadmap for Coca-Cola Company.
Nonalcoholic beverage industry trends
It is quite true that the beverage industry is growing with high concerns. Consumers are demanding more from the beverage makers thus leading to the production of low sugar, flavors and calorie products at the market. Markets have to keep on changing with globalization taking center stage. It has been projected that the market would grow from $1.58 trillion in 2009 to $1.78 trillion in 2015 ( Holtzheimer et al., 2011 .p 8). Creativity and use of new applications have catalyzed competition thus making the markets to boom. Production innovation and development has steered a new way to create demand for popular drinks (……………).
It is estimated that in 2014 the beverage volumes rose by 2.2% to 30.9 billion gallons and a representative of 0.1% decline in 2013. The increase was brought about by non-carbonated beverages (…………………….). Over the years, these figures have continued to increase as the market continues to grow.
As depicted from the above data, Coke is leading when it comes to top ten refreshment beverages brands in the United States. The Coca-Cola Company makes 8.2% of the U.S consumer products. This has made her be the world leader in liquid refreshment beverages with Coca-Cola contributing close to $1 billion retail sales annually out of her rough estimate of 20 brands (Waldemer 2008, p 46). These include Coca-Cola, Dasani, Diet Coke, Minute maid and PowerAde. A rise in population, urbanization and the emergence of the middle class have played an integral role in the growth, expansion and the general landscape of non-alcoholic beverage industry.
Coca-Cola strategic position
Coca-Cola Company is the global soft drink manufacturer. She generates 60% of her revenue and 80% out of operating income outside the United States of America. It has strong brand recognition across the entire globe. It is estimated that 94% of the people in the entire world know and understand the white and red Coca-Cola Company logo (Senker and Foy, 2012).
The company has developed a solution to conservation by having the size of the bottle reduced. Reduction of size means a lot to the company as it cuts down the use of raw materials thus less contribution to waste buildup. Reducing some expenses is the best methodology for curbing costs. Another key strategy is creating sustainable packaging products. This will help in reducing the size and amounts of materials used. This at the end will reduce the weight of the product and decrease the cost of distribution (…………….).
Strengths
Marketing is one of the core strengths of the Coca-Cola Company. The Company boasts an impressive 125 years of operation in such a competitive beverage business. Coca Cola-being, one of the most renowned names worldwide sells more than 500 brands of beverage. 3,500 of those are sold in more than 200 countries (Matura 2013, p.68-69). Presently, Coca-cola accounts for the distribution of close to 3.1% of drinks consumed in the world.
This has enabled the Company to become one of the top private employers in the world. To market its products, the company made use of the mobile marketing platform in the year 2014, hence making the technique very prominent in product promotion exercises. Additionally, the Company has partnered with system associates and made a massive step in nurturing entrepreneurs. Such partnerships tend to encourage cultural diversity in the company.
Coca-cola products are distributed in numerous countries worldwide. This shows just how popular they have been over the past decades and is a significant strength of the company which enables it to have a competitive edge. In today’s world, people are consuming close to 2 billion products from the company in a day. These products may include non-alcoholic beverages and carbonated drinks. The company has entered into partnerships with other companies in the same industry such as Monster, to increase sales.
Furthermore, the company leadership is very innovative. They have created a product that is sustainable socially, economically and environmentally while doubling its revenue from sales worldwide. They have continued being innovative by introducing more adventures for instance sweeteners like Stevia (Reynolds et al., 2010, p.69-70).
Coca-cola is a recognizable company. Coca-cola is a company whose reputation gives it a competitive edge over other market players in the same industry. Partnering with restaurants, amusement parks, and vending machines has provided aid to their recognition. The popularity is much bigger compared to its competitors across the world, with a brand that continues to grow.
There are benefits of the freestyle machine. Even though this device is currently available in the USA alone, it is growing in popularity gradually. The machine provides more than 100 beverage options in a single machine, which is far superior to all drink dispensers in existence. There is also an App that allows someone to find a nearby freestyle machine. In a world of technology, we are in; your drink is only t arm’s length.
There is the availability of products and support. Coca-Cola has for the longest time been the number one Soft drink provider in the world. It has distributed its products to countries where its competitors have failed to venture. Also, it has shown support to its customers by spending millions of dollars in sponsorships to give back to the communities for continued loyalty.
Valuation of the Company-Coca Cola has an estimate of nearly 79.5 billion dollars, joining the ranks of the companies with the highest market value in the world (Brown and Harris, 2012). This valuation certainly includes company assets and the value of the brand among other factors.
Market leader-Coca cola and Pepsi are the two major competitors in the beverage industry. Coca-cola being the dominant force in the market has the most significant market share. This is a big plus because it gives an advantage to Coca-cola in times of competition because of the number of years of experience in the industry. Extensive distribution network-the demand of Coca-cola product is very high across the world, which makes it necessary to have a vast distribution network to cater for the needs of millions of consumers daily in the world.
Weaknesses
There is a massive decline in sales of soda, which has always been an enormous market for the Coca-Cola Company. An increase in advertising would be the best solution for this problem because it would improve the products appeal to its target market.Negative publicity has also weakened customer loyalty towards the product. For instance, when the media publishes news that Coca-cola intends to sack nearly 1800 of its staff, it amounts to bad publicity. Customers are wary of companies that lay off its employees.
It is also of concern that specific products under the Company do not get advertised like their more famous counterparts. This leads to a lack of awareness about the existence of the product which translates to low sales and high recall numbers. Bottles of beverages that are not sold are recalled back to the company.
The number of brands on offer is too many. The Company has more than twenty brands on offer. This provides the consumers with too many options which may be too much to choose from. The consumers need simplicity to make rational choices about what products to consume. Some of the new brands the Company introduces end up being unpopular with the consumers. For instance coke black. The Company discontinues some of these brands after unsuccessful introduction into the market.
Coca-cola has failed to imitate other popular drinks. Some drinks such as Dr. Pepper have become very popular in the market. However, a lack of creative imitation by Coca cola's younger generation has led to a lack of interest in Coca-cola brands. This lack of creativity of its younger generation led loss of potential partnerships...