Coca-Cola SWOT Analysis

SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a companys strategic situation. The technique is based on the assumption that an effective strategy derives from a sound fit between a firms internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firms strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.

Coca-Cola
The Coca-Cola Company (TCCC) is a leading manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups, in the US. TCCC has a strong brand name and brand portfolio. Business-Week and Interbrand, a branding consultancy, recognized Coca Cola as the number one brand in their top 100 global brands ranking in 2007. The Business WeekInterbrand valued Coca Cola brand at $65,324 million in 2007. TCCC ranks well ahead of its close competitor, Pepsi, which was ranked 22 with a brand value of $12,888 million. The company's strong brand value facilitates customer recall and allows Coca-Cola to penetrate markets. However, the company is threatened by intense competition, which could have an adverse impact on the company's market share.

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Coca-Cola SWOT Analysis

Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor Favorable TYPE OF FACTOR Unfavorable

Internal

Strengths Worlds leading brand Large scale of operations Strong revenue growth

Weaknesses Sluggish performance in North America

External

Opportunities Growing bottled water market Growing Hispanic population in the US Acquisitions

Threats Intense competition Dependence on bottling partners Sluggish growth of carbonated beverages

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