Question

swot analysis on coca cola. write atleast 10 points on each segment.​

Answer 1

Answer:

*Strengths for Coca-Cola

Good corporate culture

Stable cash flows

Successful international expansion

Sophisticated marketing-mix models

Manufacturing expertise

Highly automated systems

Efficient logistics system

Effective use of marketplace data

Good identifier of market insights

Ability to leap-frog competitor’s technology

Strong retailer relationships

Strong brand equity

Consumer “love” for the brand

Lots of key locations

Highly effective sales team

Successful product line extensions

Broad product range

High share of target markets

Clear value proposition

Clear segments targeted effectively

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Answer 2

Answer:

• Brand Equity – Interbrand in 2011 awarded Coca cola with the highest brand equity award. Coca cola with its vast global presence and unique brand identity is definitely one of the costliest brands with the highest brand equity.
• Company valuation – One of the most valuable companies in the world, Coca cola is valued around 79.2 billion dollars. This valuation includes the brand value, the numerous factories and assets spread out across the world and the complete operations cost and profit of Coca cola.
• Vast global presence – Coca cola is present in 200 countries across the world. Chances are, any country that you go to, you will find coca cola present in that market. This vast global presence of coca cola has also contributed to the building of the mammoth brand name.
• Largest market share – There are only 2 Big competitors in the beverage segment – Pepsi and Coca cola. Out of these 2, coca cola is the clear winner and hence has the largest market share. Amongst all beverages, Coke, Thums up, Sprite, Diet coke, Fanta, Limca and Maaza are the growth drivers for Coca Cola.
• Fantastic marketing strategies – Coca cola unlike Pepsi always tries to win peoples heart. Where Pepsi’s target is continuously changing, and is targeted towards youngsters, Coca cola targets people of all ages. The targeting is also done by celebrities who are well liked – for example – Amitabh Bacchan, Sachin tendulkar, Aishwarya Rai, Aamir Khan etc
• Customer Loyalty – With such strong products, it is natural that Coca cola has a lot of customer loyalty. The products mentioned above like Coca cola and Fanta have a huge fan following. People will prefer these soft drinks over others. Because of the good taste of Coca cola, finding substitutes becomes difficult for the customer.
• Distribution network – Coca cola has the largest distribution network because of the demand in the market for its products. On the other hand, due to this successful distribution network, Coca cola has been able to command such a high market presence.

Weaknesses in the SWOT of coca cola

• Competition with Pepsi – Pepsi is a thorn in the flesh for Coca cola. Coca cola would have been the clear market leader had it not been for Pepsi. The competition in these two brands is immense and we don’t think Pepsi will give up so easily.
• Product Diversification is low – Where Pepsi has made a smart move and diversified into the snacks segment with products like Lays and Kurkure, Coca cola is missing from that segment. The segment is also a good revenue driver for Pepsi and had Coca cola been present in this segment, these products would have been an additional revenue driver for the company.
• Absence in health beverages – If you watch the news, you would know that obesity is a major problem affecting people nowadays. The business environment is changing and people are taking measures to ensure that they are not obese. Carbonated beverages are one of the major reasons for fat intake and Coca cola is the largest manufacturer of Carbonated beverages. The inference is that the consumption of beverages in developed countries might go down as people will prefer a healthy alternative.
• Water management – Coca cola has faced flak in the past due to its water management issues. Several groups have raised lawsuits in the name of Coca cola because of their vast consumption of water even in water scarce regions. At the same time, people have also blamed Coca cola for mixing pesticides in the water to clear contaminants. Thus water management needs to be better for Coca cola.