SWOT

STRENGTHS ANALYSIS WEAKNESSES

High brand equity Competition
Global Presence Soft Drink Reliance
Economies of Scale Water Management
Diversified Product Portfolio Product Diversification is low
Branding and Promotion Lack of Health Beverages

OPPORTUNITIES THREATS

Diversification Competition
Supply Chain Management Regulation
Sustainability Modernization
Market the lesser selling Reduction for demand in
products Carbonated Drinks
 PESTLE Analysis

SOCIAL
Symbol of American
S
SOCIAL
T
TECHNOLOGICAL
TECHNOLOGICAL
Best machineries,greener
capitalism, 5by20 initiative, bottlespartnering with
“Thanda Matlab Coca Cola”
E L gopuff,Paper board
technology,inclusion of
ECONOMIC LEGAL
PESTLE Blockchain
ECONOMIC ANALYSIS
POLITICAL ENVIRONMENTAL LEGAL
Financial crisis of 2008-09
Devaluation of venezualian
currency,Sin-tax P E FDA Regulations, Coca Cola vs
the Bisleri International Pvt
Ltd, withdrawal from India

POLITICAL ENVIRONMENTAL
Changes in laws and regulations
Changes in non-alcoholic
carbon reductive strategy,
business.Polictical or switching to cleaner energy
Government sources, Placimada’s
8 restrictions,backlash in TN case(Kerala)
.
 Porter’s Five Forces
The main ingredients for soft drink
include carbonated water,
phosphoric acid, sweetener, and Entry barriers are relatively low for beverage industry: there is
caffeine. almost 0 consumer .There are more and more new brands

NEW ENTRY
THREAT OF
The suppliers are not appearing in the market with usually lower price than Coke
concentrated or differentiated.  products  However Coca-Cola is seen not only as a beverage
Any supplier would not want to but also as a brand.
lose a huge customer like Coca-
Cola.

COMPETITIVE
SUPPLIER POWER RIVALRY BUYER POWER
The individual buyer has little to
no pressure on on Coca-Cola.

The Main competitor, Pepsi is

SUBSTITUTION
priced almost the same as Coca-

THREAT OF
Cola

People are getting concerns of

There are many kinds of energy drink and soda negative effects of carbonated
products in the market. Coca-Cola doesn’t really beverages. Increasing number of
have a special flavor. In a blind taste test, people consumers begin to drink fruit
couldn’t tell the difference  between Coca-Cola coke juice, lemonade and tea instead of
and Pepsi coke. soda  products
 VRIO Framework
VALUABLE
• Different types of products coca cola offers
• Increasing differentiation and decreasing the
price of the product

RARE:
• Secret formula (different flavor)
• Resource persist over the long time period

COSTLY TO IMITATE:
• The handful known the formula and has a long
history of keeping it  make the cola different  and
it impossible to imitate

ORGANISATION
• It plays role in differentiation because red
signifies coke over the Pepsi blue.
Corporate strategy

Stability Strategy- The company uses this strategy when it feels that growth strategies
are not a feasible choice in the presence of unfavourable economic circumstances or
some internal issues. So it focuses on its quality control, marketing efforts, Supply chain
and R&D

Retrenchment- It uses retrenchment strategy for those business units where it observes
no or little growth during an indefinite period of time. It retrenches these business units
in a number of ways: including budget cut for production, Marketing, complete
shutdown of operations or selling out the whole unit.
Growth strategy

• Biggest competitive advantage

• Product-portfolio diversification

• Huge investments in business expansion

• Disciplined portfolio growth

• Strategic partnerships
Supply chain based diversification-
Vertical Integration
• All bottling partners work closely with customers

• Vertical integration increases operational effectiveness and efficiency

• In 2006, Company-owned bottling operations were brought together to form the

Bottling Investments operating group, now the second largest bottling partner.

• Coca-Cola manufactures owns the brands

• The bottling partners manufacture, package, merchandise and distribute the final

branded beverages to our customers and vending partners, who then sell our products
to consumer
Market
Developed Markets Developing Markets

• Cultural Markets
Value-chain based diversification
Related fit/related linked
• Coca Cola follows a related diversification strategy.
• It expands and adds to its existing product lines and markets.
• With a related diversification strategy, Coca cola has the advantage of
understanding the business and of knowing what the industry
opportunities and threats are.

• An example of this could be the expanding product portfolio with addition

of various product lines like sports drink, Health drink and sugar free
drink, aimed at different customer segment.
 Mergers and Acquisitions
Coca cola are going towards Diversification, it involves creating a new customer base to expand the market
potential. At The Coca-Cola Company, we see M&A as an enabler of our growth strategy rather than a strategy
in and of itself.

Coca Cola and Nestle

Under Nestea, Coca-Cola offered ready to drink iced tea. Unfortunately, they had to end this joint venture in
2017 due to fierce competition from Lipton iced tea (Joint venture of Unilever and Pepsi Co.) (Nestle,
2017).

Coca cola and Costa

The acquisition of Costa coffee was mainly focused to introduce it to a new customer base and increases their
knowledge in the coffee supply chain.
 Example : Costa Coffee and its strategy
The Costa Coffee platform will gave Coca-Cola the ability to scale within the $500 billion global hot beverage
category and create a world-class global coffee business, allowing them to better serve their customers and
strengthen their ready-to-drink portfolio.

Their strategy mainly centers around:

• Use the retail presence strategically to build the brand and experience.
• Utilize Costa’s coffee supply chain capabilities, including sourcing, vending and distribution, to enhance Coca-
Cola’s ability to provide total beverage solutions to customers.
• Expand the Costa Express system with our foodservice and on-premise partners around the world.
• And finally, launch the brand in both ready-to-drink and at-home consumption products around the world,
complementing our existing portfolio.
• And finally, launch the brand in both ready-to-drink and at-home consumption products around the world,
complementing our existing portfolio.
 Internal revenue expansion strategy
Coca-Cola has taken several steps in the ongoing evolution of its revenue growth management (RGM) agenda.
RGM is a key commercial capability that answers critical business questions of ‘Within the priority categories,
where is the revenue? Which pack? Which price tier? Which channel? Which customer? Which competitor?’
Approach to the market COCA COLA Business Level Strategy

Broad Broad
Broad Low Cost Differentiation

Focused Focus
Narrow(Niche) Low Cost Differentiation

Low cost Differentiation

Strategic Emphasis
• Differentiation Strategies-Since its inception in 1886,Coca Cola has always
been focused on differentiating its products in the global beverage
industry whether its unique market campaigns, labelling bottle shapes
,flavor variations etc.
• Low –cost Leadership -It has always tried to maintain a tight control over
its manufacturing, overhead ,marketing and R&D costs to have its
products at minimum possible cost.
• Focus Strategy-The company uses focus strategy in both low cost and
differentiation dimensions. The company produces for every target
market which is spread across 200 countries at a large scale in order to
achieve low cost leadership.