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Read the following case study for Coca-Cola and prepare a SWOT analysis for it. Coca-Cola is...

Read the following case study for Coca-Cola and prepare a SWOT analysis for it.
Coca-Cola is a highly popular brand with a unique brand identity. Its soft drinks are the most-selling drinks in history, one of the most renowned brands with the highest brand equity. It was also awarded ‘highest brand equity award’ in 2011. It is sold in more than 200 countries with 9 billion servings per day of Company products. It has introduced more than 500 new products globally. Some of these are variations of Coca-Cola beverage, like Coco Cola Vanilla and Cherry Coca-Cola. Its brands are known to touch every lifestyle and demography.
Coca-Cola is considered one of US’s most emotionally-connected brands. This valuable brand is associated with ‘happiness’ and has strong customer loyalty. Customers can quickly identify their particular taste. Finding its substitutes is difficult for them. Moreover, Coca-Cola and Fanta have a huge fan following than other beverage names in the industry. Coca-Cola is listed as the 3rd Best Global Brand on Interbrand’s annual ranking. Having an estimated brand value of $79.96 billion, it has retained the top position for many years.
However, Carbonated drinks are one of the major sources of sugar intake. It results in two grave health issues – obesity and diabetes. Coca-Cola is the biggest manufacturer of carbonated beverages. Many health experts have prohibited the use of these soft drinks. It is a controversial issue for the company. However, Coca-Cola hasn’t devised any health alternative or solution for this problem yet.
Out of Coca-Cola and Pepsi, the only two largest manufacturers of soft drinks in the beverage segment, Coca-Cola has the largest market share. Coke, Sprite, Diet Coke, Fanta, Limca, and Maaza are the highest growth drivers for Coca-Cola. It also has the most efficient and most extensive distribution network in the world. The company has nearly 250 bottling partners globally.
Pepsi is the biggest rival of Coca-Cola. Had it not been Pepsi, Coca-Cola would have been the clear market leader in the beverage. Coca-Cola has low product diversification. Where Pepsi has launched many snacks items like Lays and Kurkure, Coca-Cola is lagging in this segment. It gives Pepsi leverage over Coca-Cola. Coca-Cola has the chance to introduce new offerings in health and food segments just like Pepsi. It can contribute to their revenue, and they can branch out from carbonated drinks. Coca-Cola owns several packaged drinking water brands like Kinley. There is a great potential for expansion in this segment for Coca-Cola. Yet, there is a way to expand and bring healthier drinks in the market to avoid people’s criticism.
Coca-Cola has faced many criticisms over its water management issue. Many social and environmental groups have claimed that the company has a vast consumption of water in water-scarce regions. Besides, people have alleged that Coca-Cola is polluting water and mixing pesticides in water to clear contaminants. In addition, Greenpeace censured Coca-Cola in its published report in 2017 for its use of single-use plastic bottles. It has also been criticized over its recycling and renewable sources.
Many regions with hot climate have the highest consumption for cold drinks. Thus, increasing presence in such locations can be excellent – Middle Eastern and African countries are a good example. Coca-Cola acquired AdeS in 2016. AdeS is the largest soy-based beverage brand in Latin America. Through this acquisition, Coca-Cola expanded its ready-to-drink beverage portfolio.
Coca Cola’s business is entirely dependent upon logistics and supply chain. Transportation costs and fuel prices are always on the rise. Thus, coming up with some advanced and improved systems for distribution can be a way out from this problem.

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SWOT analysis of Coca-Cola:

STRENGTHS

Coca Cola has an unparalleled image to the brand. It's a name that millions around the world call home. At least one of their items will come across you in over 200 countries.

We have high customer loyalty, regardless of their established brand. Coca Cola's unique flavor makes it easy to recognise and difficult to find a substitute for its consumers.

Coca Cola has a firm valuation of nearly $80 billion. As they launched their initiative to place customer names on their bottles, sales saw increase. Inviting customers to buy the drug, taking photos next to the bottles and sharing the images on social media sites.

WEAKNESSES

Coca Cola’s major competitor is Pepsi. But unlike Pepsi, which has branched away from the Soda-only model of revenue, Coca Cola has yet to develop a food or snack. This puts them behind Pepsi in terms of competition since Pepsi has Lays chips and other foods under their belt.

People have become concerned with obesity and diabetes. Carbonated drinks are a big influencer of these health complications. Coca Cola, as a major carbonated drink manufacturer, can contribute to the obesity epidemic. They haven’t addressed or found a healthier solution yet.

OPPORTUNITIES

Coca Cola can create new products and diversifies their current offerings. They have the brand identify, customers, manufacturing, and evaluation to back this up. It’s possible to find niches untouched by Pepsi to develop products, especially in the health food spaces. This way they branch out from soft drinks.

Coca Cola is in hundreds of countries. They could focus on moving into developing countries with humid temperatures. These countries will enjoy the treat of Coca Cola in a way developed countries, already accustomed to the choice, may not.

THREATS

Coca Cola was suspected of using pesticides in their water. But water is also becoming limited because of climate change. Considering Coca Cola needs plenty of water to create their soft drink empire, should water become scarce, they would be in trouble.

This is why creating new products is important. Pepsi would also be affected if water became difficult to come by, but they still have other markets to use and develop. Coca Cola does not.

Additionally, the trends and development of cafes can threaten Coca Cola’s livelihood. Smoothies, healthy tonics, and teas are taking over. People are looking for healthy alternatives to less sugar. With these shops, especially Starbucks, it could dampen Coca Cola’s sales if they don’t act quickly.

Conclusion:- Coca Cola spent time, money and publicity on the beverage industry to become the giant it is. Yet they miss expanding into other food-related channels, allowing Pepsi to easily dominate certain other markets. They are well known and can use their iconic brand to spread to developing countries, particularly on hot and humid days, which will appreciate the products.


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