In: Operations Management
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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.