SWOT ANALYSIS: Strengths Coca-Cola has been an intricate part of American culture for over a century.

The product¶s image is laden with sentimentality, and this is an image many people have taken deeply to heart. The Coca- Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of Coca-Cola¶s greatest strengths. ³Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment´ (Allen, 1995). Additionally, according to Bettman, et. al, (1998) Coca-Cola¶s bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because Coke does not have outright ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers (Bettman, et. al, 1998). Weaknesses: Although domestic business as well as many international markets are thriving (volumes in Latin America were up 12%), Coca-Cola has recently reported some "declines in unit case volumes in Indonesia and Thailand due to reduced consumer purchasing power." According to an article in Fortune magazine, "In Japan, unit case sales fell 3% in the second quarter [of 1998]...scary because while Japan generates around 5% of worldwide volume, it contributes three times as much to profits. Latin America, Southeast Asia, and Japan account for about 35% of Coke's volume and none of these markets are performing to expectation (Mclean, 1998). Opportunities: Brand recognition is the significant factor affecting Coke¶s competitive position. Coca-Cola¶s brand name is known well throughout 90% of the world today. The primary concern over the past few years has been to get this name brand to be even better known. Packaging changes have also affected sales and industry positioning, but in general, the public has tended not to be affected by new products (Allen, 1995). Coca-Cola¶s bottling system also allows the company to take advantage of infinite growth opportunities around the world. This strategy gives Coke the opportunity to service a large geographic, diverse, area (Bettman, et. al, 1998). Threats: Currently, the threat of new viable competitors in the carbonated soft drink industry is not very substantial. The threat of substitutes, however, is a very real threat. The soft drink industry is very strong, but consumers are not necessarily married to it. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot chocolate (³Cola Wars´, 1991). Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage market, the changing healthconsciousness of the market could have a serious affect. Of course, both Coke and Pepsi have already diversified into these markets, allowing them to have further significant market shares and offset any losses incurred due to fluctuations in the market (³Cola Wars´, 1991). Consumer buying power also represents a key threat in the industry. The rivalry between Pepsi and Coke has produce a very slow moving industry in which management must continuously respond to the changing attitudes and demands of their consumers or face losing market share to the competition. Furthermore, consumers can easily switch to other beverages with little cost or consequence (³Cola Wars´, 1991). The PEST analysis examines changes in a marketplace caused by Political, Economical, Social and Technological factors. P: Political change, from one party to another in control- for example the rise in private healthcare and privatisations under Conservative governments. Political Analysis for Coca-Cola

Non-alcoholic beverages fall within the food category under the FDA. The government plays a role within the operation of manufacturing these products in terms of regulations. There are potential fines set by the government on companies if they do not meet a standard of laws.

Lowering the interest rates will ultimately excite consumer demand in the economy. The increasing number of women going out to work. consumers will recover their confidence over the next year. They have cut the interest rate ten times this year. car shopping. Most economists loosely define a recession as two consecutive quarters of contraction. Companies will expand and increase use of debt as a result of the low borrowing rates. government changes and restrictions on the ability to transfer capital across borders. S: Social change involves changing attitudes and lifestyles. The non-alcoholic beverage industry has high sales in countries outside the U. things changed. new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions. "For major soft drink companies. E: Economic change.2001]. However. As researching for new products would cost less the Coca-Cola Company will sell its products for less and the people will spend as they would get cheap products from Coca-cola. ? Political conditions. According to the Standard and Poor's Industry surveys. Officially in a recession.S. many are still handling their money cautiously. competitive product and pricing pressures and their ability to gain or maintain share of sales in the global market as a result of action by competitors.com) However. the United States was starting tot see the economy recover slightly and it is only just recently that they achieved the economic levels." Rex Nutting. taxation requirements. or negative GDP growth. has been in recession since March. The rate now lies at a 40-year low of 2%. Coca-Cola can borrow money for investing in other products as the interest rates are low.S. sales equipment and technology. However. the government officially declared that the U. for example. there has been economic improvement in many major international markets. Social Analysis for Coca-Cola Many U. The economy will return to sustained. Economic Analysis for Coca-Cola Last year the U. Brazil. which also depends on economic and political conditions.S." These markets will continue to play a major role in the success and stable growth for a majority of the non-alcoholic beverage industry. Also. economy was strong and nearly every part of it was growing and doing well.cbsmarketwatch.S. (CBS Market Watch. and how well they are able to acquire or form strategic business alliances with local bottlers and make necessary infrastructure enhancements to production facilities. Before the attacks on September 11. and Germany. without limitation. distribution networks. Future Outlooks The Federal Reserve is doing all that it can help the economy recover. This has affected the non-alcoholic beverage industry in that many are switching to bottled water and diet colas instead of beer and other alcoholic beverages. [nov 26.S. time . These include. including civil unrest. positive growth in the first half of 2002. and eating out at restaurants. It can use the borrowing on research of new products or technology. led to the need for time-saving products for the home. ? Changes in the non-alcoholic business environment. They believe that with lower inflation still to come. for example a recession creating increased activity at the lower ends of product price ranges. 2001. ? Their ability to penetrate developing and emerging markets. " U. citizens are practicing healthier lifestyles.The following are some of the factors that could cause Coca-Cola company's actual results to differ materially from the expected results described in their underlying company's forward statement:? Changes in laws and regulations. Rate of interest rises depressing business and causing redundancies and lower spending levels. because of aggressive action by the Federal Reserve and Congress it will be short and mild. especially in international markets. including changes in accounting standards. www. On Monday 26. (including tax rate changes. going to the malls. Consumers are now resuming their normal habits. such as Japan.

Since many are reaching an older age in life they are becoming more concerned with increasing their longevity. Due to introduction of this machineries the production of the Coca-Cola company has increased tremendously then it was few years ago ? CCE has six factories in Britain which use the most stat-of the-art drinks technology to ensure top product quality and speedy delivery. This advertising makes the product attractive.org). The need for bottled water and other more convenient and healthy products are in important in the average day-to-day life.management has increased and is at approximately 43% of all households.the Internet. Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. They make some products look attractive. T: Technological change . This technology is being used in media to sell their products. Technological Analysis for Coca-Cola Some factors that cause company's actual results to differ materially from the expected results are as follows: ? The effectiveness of company's advertising. Europe's largest soft drinks factory was opened by CCE in Wakefield. marketing and promotional programs. Yorkshire in 1990. ? As the technology is getting advanced there has been introduction of new machineries all the time. This helps in selling of the products. This will continue to affect the non-alcoholic beverage industry by increasing the demand overall and in the healthier beverages. The Wakefield factory has the technology to produce cans of Coca-Cola faster than bullets from a machine gun. ? Introduction of cans and plastic bottles have increased sales for Coca-Cola as these are easier to carry and you can bin them once they are used. e-commerce. (http://www. There is a large population of the age range known as the baby boomers. The new technology of internet and television which use special effects for advertising through media.creates opportunities for new products and product improvements and of course new marketing techniques.cdf-mn. .

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