SWOT Analysis of Coca-Cola Company

The company owns and promotes approximately 500 non-alcoholic brands of beverages. These brands include waters, juices, coffees and teas which are ready to drink, sports and energy drinks. The world’s top non-alcoholic beverages are owned and marketed by this company. The company started selling finished beverages bearing the company trade marks in united states in 1886 and its now selling them in more than 200 countries in the continent. This makes coca- cola have the worlds largest distribution network. Beverages bearing trademarks of this company stand for 1.9 billion of the estimated 57 billion servings of all soft drinks consumed the whole world daily.

      Its operative organization of work within the company and its performance are some of the derivatives of its vast experience. Furthermore, the company keep a dynamic and drastic development. This means that the big focus of the company is extension of business. The company always introduces new products in market to attract new customers. The advertising and marketing strategy of the company has made its brand the most known brand in the world. it has created a strong brand awareness and this puts the company in a better position in respect to its competitors. Its distribution network also is a major strength, which has made the company able to command a high market presence.

        In spite of all these strengths, the company is faced with some weaknesses that prevent it from better marketing performance and from a dominant position in the beverage global market. Its strategy of expanding and extending its business and market has negative effects. The company suffers from bureaucracy and great organization formulation which leads to slow company developments since the decisions are not taken fast and, therefore, the decisions are not always as effective as they could have been due to this complex organizational hierarchy (Zyman, 1999). In reference to this it means that large organizational structure makes the process of decision making ineffective and this reduces the efficiency of usage of the company’s funds. In this way it means that a company may have large profits and fail to utilize it effectively due to the large structure and bureaucracy involved which take a large amount of these …. (Nembhard, 2006).

 Coca-Cola is the leading beverage company internationally practically in the markets where it is available,. in this situation, it means that the company can effectively go on with its strategy of international market expansion because it can effortlessly overcome its barriers and set its market entering standards which can act as barriers for other small competitors which ….. The company also has an opportunity to diversify its products. With the prevailing market of energy drinks and cholesterol free products, the company can produce this as another product which will boost it presence in the market.

       On the other hand, the company faces a great deal of threats from its competitors such as Pepsi which is its main competitor in the market at the moment. Owing to the fact that Coca-Cola still holds the leading position in the market, it may be undermined by the recent legal and ethical concerns. In these countries, it is alleged that the company constructs manufacturing industries habitually not putting into consideration the legal norm and the accepted standards in well-developed countries and also its violation of labor rights of its employees. In addition, the customers are starting to question the safety of the company’s products which may be possibly harmful to their health. Nutritious selections by consumers are another threat. A shift towards natural and organic products has resulted to many opting for nutritional waters, and others artificially made healthy beverages. the demand for cola has fallen out of favor with buys since it only offers high amounts of sugars, or diet items laced with artificially made sweeteners.

SWOT analysis diagram for Coca-Cola company

Strengths;    Extensive experience; Effective organization of work; Dynamic development; Brand awareness; Strong distribution network;    Opportunities:    leading position in international markets; Diversification of products;  
Weaknesses: a large corporate structure and organizational hierarchy;  Threats: persistent competition (Pepsi); Human rights concerns; Impact of company’s beverage on customer health; Anti-monopolistic initiatives’ Nutritious selections;    

                                                                             References

Nembhard, I. M., & Edmondson, A. C. (2006). Making it safe: The effects of leader inclusiveness and professional status on psychological safety and improvement efforts in health care teams. Journal of Organizational Behavior: The International Journal of Industrial, Occupational and Organizational Psychology and Behavior, 27(7), 941-966.

Barney, J. B. (1995). Looking inside for competitive advantage. Academy of Management Perspectives, 9(4), 49-61.

Johnson, V., & Peppas, S. C. (2003). Crisis management in Belgium: the case of Coca-Cola. Corporate Communications: an international journal, 8(1), 18-22.

Charles Noble; The End of Marketing as We Know It: by SergioZyman, … New York. 1999,