This video will analyze Coca Cola company using a SWOT analysis. It will discuss the key Coca Cola strengths, weaknesses, opportunities and threats that affect the company in 2018, which might help you get a better understanding about the Coca Cola and its business.
The most important strength Coca Cola has is a dominant market share in the beverage industry.
The Coca-Cola Company is the largest non-alcoholic beverage company in the world. The company owns, distributes and sells over 500 various non-alcoholic beverage brands in over 200 countries.
Being large and having dominant market share has a few advantages over competitors: economies of scale; market power over suppliers and competitors; power over the buyers; wide audience reach.
As for the disadvantages, Coca Cola’s major weakness is strong reliance on carbonated soft drinks to generate the majority of the company’s revenue.
According to Beverage Marketing Corporation data, the market for carbonated soft drinks has been declining for the past 10 years.
The declining demand for carbonated soft drinks is the major company’s weakness as it heavily relies on carbonated soft drinks such as Coca-Cola, Diet Coke, Sprite and Fanta for the majority of the sales.
Let’s move on to the opportunities and the key opportunity for Coca Cola is an expansion of ready-to-drink (RTD) coffee products in the U.S. market
According to the Beverage Marketing Corporation Report, the fastest growing liquid beverage segment in the U.S. during 2013-2017 was RTD coffees.
Although the segment is relatively small, The Coca-Cola Company could further promote its Georgia brand in the U.S. market to establish itself as the RTD coffee leader in its home country.
One of the threats that affect Coca Cola is that obesity concerns may reduce demand for some of the company’s products.
According to The Coca-Cola Company’s financial report, obesity concerns are the no.1 threat that is affecting the company.
Obesity concerns are already significantly affecting some of the beverage segments, mainly carbonated soft drinks segment, which is the largest Coca-Cola’s market.
These are the key Coca Cola SWOT strengths, weaknesses, opportunities and threats. If you’d like to access many more of them, please visit our website https://www.strategicmanagementinsight.com/swot-analyses/coca-cola-swot-analysis.html and purchase the Coca Cola SWOT analysis from there.
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