SWOT Matrix Analysis

Strengths Weaknesses
Internal Factors
1. Coca Cola has a Strong Distribution 1. Coca-Cola addiction may cause
(Strengths and network with a large number of health-related problems.
Weaknesses) outlets. 2. Low amounts of spending on
2. It has a low-cost structure, which research and development as
provides it with an advantage over compared to the competition.
the competition. 3. It has a high employee turnover rate,
External Factors
3. It has a skilled labour force that is with low employee motivation and
(Opportunities
highly qualified, innovative and working morale.
and Threats) diversified.
4. Coca-Cola’s bottling system
Opportunities Strengths- Opportunities Strategy Weaknesses- Opportunities Strategy
1. Social media users are increasing
worldwide. Develop environmentally friendly Increase salaries, provide incentive packages
2. Household income is increasing and products through innovation, at a low and benefits to employees to reduce turnover
so is the consumer spending. Inflation cost so that they could be sold at a low and improve work morale. This could be
in the economy is expected to remain price (S2, S3, O3). possible as costs are low currently. (W3, O2)
low.
3. Growth in environmentally friendly Use their bottling system for brand
products and services. Government is recognition.(S4, O4)
offering subsidies on these.
4. Brand recognition is the significant
factor affecting Coke’s competitive
position
Threats
1. There is a threat of new entrants
coming into the market.
2. Fuel price has risen in recent years
making inputs expensive.
3. Competition within the industry is
increasing.
4. More substitute products are now
available.
Strengths- Threats Strategy
Use a strong distribution network to reach out
to customers and fight off new entrants into the
market (S1, T1).
Use its innovative teams to find cheaper
alternatives to fuel so that these could be used,
thereby reducing costs (S4, T2).
Weaknesses- Threats Strategy
Increase spending on research and development
to enable Coca Cola to better compete with
competition (W2, T3).
Provide incentives, increase engagement, or
provide a better work environment to retain
talent. This will ensure that employees don’t
leave and join competitors (W3, T3).