Southeast University

Assignment on
SWOT Analysis Of The Coca-Cola Company
Group Name : Rajanigandha
Course Title: Human resources management
Course Code: HRM 5185
Section : 3
Submitted To:
Ms. Jinnat Rehena
Lecturer
School of Business Studies
Submitted By :

NO NAME ID
1 Farhana Anzum 2023010004025
2 Minhajul Abdin 2023010004030
3 Nowshin Nahar Sara 2023010004004
4 Shomser Ali Emon 2023010004005
5 Tasrif Shahriar 2022110002009

Date of Submission : 21.05.2023

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 TABLE OF CONTENTS

NO. TOPICS Page no.

I. Title Page 1 of 14
II. Table of Content 2 of 14
1. An Overview of Coca-Cola 3 of 14
2. SWOT Analysis of Coca-Cola 3 of 14
3. The following is a SWOT analysis of Coca Cola: 4 to 6
Coca-Cola Strengths – Internal Strategic Factors
4. Coca-Cola Weaknesses – Internal Strategic Factors 6 to 7
5. Coca-Cola Opportunities – External Strategic Factors 8 to 10
6. Coca-Cola Threats – External Strategic Factors 11 to 12
7. Recommendations 12 of 14
8. Summary 13 of 14
9. References 14 of 14

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An Overview of Coca-Cola
The market leader in the soft drinks industry, Coca-Cola is one of the most renowned brands across
the world. Be it your home, office, shops, hotels, bars or restaurants, Coca-Cola is everywhere!
94% of the world’s population recognizes the brand instantly by its red and white Coca-Cola logo
as per Business Insider. More than 10,000 soft drinks from Coca-Cola are consumed every
second of every day on average.
Coca-Cola was established in 1886 in Atlanta by John Pemberton. Within a few years, Coca-Cola
became the most recognized, renowned, and widely distributed brand in the world.
Currently, James Quincey is the CEO of this mega corporation to discover more about the world’s
renowned beverage brand through this Coca Cola SWOT analysis.

SWOT Analysis of Coca-Cola

The Coca Cola SWOT analysis can find out the strategies that can help the company to strengthen
its position and maximize revenue. It identifies the effects of competition and weaknesses as per
the culture and organizational structure. The company can rebuild its strategies and actions by
considering opportunities. The company can look for business expansion to earn profit and long-
lasting stability in the market. It can also adapt to newer technologies.

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The following is a SWOT analysis of Coca Cola:
Coca-Cola Strengths – Internal Strategic Factors
1.Strong brand identity
Coca-Cola is a highly popular brand with a unique brand identity. Its soft drinks are the
most-selling drinks in history.
2. High brand valuation
Coca-Cola is undoubtedly one of the most renowned brands with a high brand value.
According to Interbrand annual report, Coca Cola is ranked 6th best global brand in 2021
with a brand value of $57 Billion. Other top ranking companies on the list
are Apple , Amazon , Microsoft ,Google and Samsung.

3. Extended global reach

It is sold in more than 200 countries with 1.9 billion servings per day of Company
products. It has introduced more than 500 new products globally. Some of these are
variations of Coca-Cola beverage, like Coco Cola Vanilla and Cherry Coca-Cola. Its brands
are known to touch every lifestyle and demography.
4. Greatest brand association and customer loyalty
Coca-Cola is considered one of US’s most emotionally-connected brands. This valuable
brand is associated with ‘happiness’ and has strong customer loyalty. Customers can
quickly identify their particular taste. Finding its substitutes is difficult for them. Moreover,
Coca-Cola and Fanta have a huge fan following than other beverage names in the industry.

5. Dominant market share

Out of Coca-Cola and Pepsi, the only two largest manufacturers of soft drinks in the
beverage segment, Coca-Cola has the largest market share. Coke, Sprite, Diet Coke, Fanta,
Limca, and Maaza are the highest growth drivers for Coca-Cola.

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Figure: Largest beverage companies in the world in 2022.

Rank Name 2022 revenue (in US$ billions) Beverage

segment

1. Anheuser-Busch InBev 58.444 Alcoholic

2. The Coca-Cola Company 43.410 Non-

alcoholic

3. PepsiCo Inc. 38.857 Non-

alcoholic

4. Nestlé S.A. 35.109 Non-

alcoholic

5. Suntory Holdings Limited 27.057 Alcoholic

6. Heineken N.V. 23.888 Alcoholic

7. Starbucks Corporation 20.650 Non-

alcoholic

6. Unparalleled distribution system

Coca-Cola has the most efficient and most extensive distribution network in the world. The
company has nearly 225 bottling partners and about 900 bottling plants globally.

7. Repositioning portfolio
Coca-Cola Company has repositioned and reduced the numbers of its global brands from
400 to 200 brands in 5 major categories such as :
➢ Coca Cola
➢ Sparkling Flavors
➢ Nutrition, Juice, Dairy & Plant
➢ Hydration, Sports, Tea & Coffee
➢ Emerging

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 8. Acquisitions
Coca-Cola has a long list of strategic and profitable acquisitions including Costa coffee
chain, Fairlife (Milk Products), Fuze Tea, AdeS, and many more. Through these
acquisitions, Coca-Cola expanded its ready-to-drink beverage portfolio.

Coca-Cola Weaknesses – Internal Strategic Factors

1. Aggressive competition with Pepsi

Pepsi is the biggest rival of Coca-Cola. Had it not been Pepsi, Coca-Cola would have been
the clear market leader in the beverage.

2. Product diversification
Coca-Cola has low product diversification. Where Pepsi has launched many snacks items
like Lays and Kurkure, Coca-Cola is lagging in this segment. It gives Pepsi leverage over
Coca-Cola.

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3. Health concerns
Carbonated drinks are one of the major sources of sugar intake. It results in two grave
health issues – obesity and diabetes. Coca-Cola is the biggest manufacturer of carbonated
beverages. Many health experts have prohibited the use of these soft drinks. It is
a controversial issue for the company. However, Coca-Cola hasn’t devised any health
alternative or solution for this problem yet.

4. Lawsuits
Trust is undermined whenever the company is accused of wrongdoing. Coca Cola is facing
a patent infringement lawsuit for using a dispenser that can recognize users and customize
drinks based on their preferences.

5. Overdependence on Third-Party Technology Providers

Coca Cola’s operations rely heavily on the technological expertise of third-parties. The
company signed another five-year deal with Microsoft to supply business software.

6. Environmentally Destructive Packaging

In the 2020 TearFund report, Coca Cola was named as one of the four world’s largest
consumer brands that are contributing immensely to global warming and carbon
emissions by using throwaway plastic bottles.

7. CEO of Coca-Cola Aims to Reduce Cherished Coke Products

James Quincy, the current CEO of Coca-Cola and a renowned businessman, has recently
been bombarded with disgruntled grievances of Coke fans. The complaints are coming in
because of the CEO’s shocking decision to permanently discontinue some of the most
popular products from Coca-Cola’s diverse product portfolio. Coca-Cola aims to eliminate
in-demand and popular products such as Tab (a diet drink), Odwalla (a smoothie brand),
and the loved coconut water Zico.

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Coca-Cola Opportunities – External Strategic Factors
1. Introduce new products and reduce added sugar
Coca-Cola has the opportunity to introduce new offerings in healthy drinks and food segments
just like Pepsi. It can contribute to their revenue, brand image and they can branch out from
carbonated drinks. According to its recent annual report, Coca-Cola has been evolving and
prioritizing the reduction of sugar in its beverages and so far 28% of its volume sold was low
or no-calorie beverage.

2. Increase presence in developing nations

Many regions with hot climate have the highest consumption for cold drinks. Thus, increasing
presence in such emerging markets can be excellent – Middle Eastern and African countries
are a good example.

3. Bring advanced supply chain system

Coca Cola’s business is entirely dependent upon logistics and supply chain. Transportation
costs and fuel prices are always on the rise. Thus, coming up with some advanced and
improved systems for distribution can be an opportunity.
4. Packaged drinking water
Coca-Cola owns several packaged drinking water brands like Kinley. There is a great potential
for expansion in this segment for Coca-Cola. There is an opportunity to expand and bring more
healthy drinks in the market to avoid people’s criticism.

5. Expand through Acquisition

Although different sectors offer lucrative opportunities for growth, quick entry into these
markets can be a challenge. Recently, Coca-Cola’s growth was driven by some of its recent
acquisitions like Costa Coffee, Aha sparkling water and it can do it again. It has the financial
resources to acquire startups or SMBs in emerging markets and exploit the numerous
opportunities they present.
6. Partners with Constellation Brand
One of the world’s biggest non-alcoholic beverages brand teams up with Corona
manufacturers Constellation Brands to make alcoholic Fresca cocktails. It seems like a good
maneuver by Coca-Cola in an ecosystem where a handful of non-alcoholic brands are
diversifying their product portfolios.

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 Moreover, both companies are looking to grab a bigger market share for the much-in-demand
spirits-based cocktail drinks. Following the news of the partnership, Constellation Brands’
share went up by 1%.

7. Coca-Cola introduces its very First TikTok challenge across the US

Coca-Cola enters the TikTok stratosphere, announcing the company’s first-ever TikTok
challenge in the US. It’s an excellent move for the company to enhance its brand recognition
further.
TikTok is a huge platform with over 1 billion monthly active users. Debuting its first TikTok
challenge, Coca-Cola has also collaborated with Grammy-nominated music artist ‘Khalid’ to
sing the challenge’s first opening song. Moreover, Coca-Cola will also collaborate with
choreographer Jalaiah Harmon, the young woman behind the famous Renegade Dance.

8. Savory snack market will see tremendous growth over the next three years
Since its inception in 1886, The Coca-Cola Company has been selling only beverages to its
customers. Due to the declining sales of its main carbonates soft drinks, Coca Cola has little
room to grow its beverage business in the current beverage market. The company has to find
new growth venues in other markets. Therefore, it could venture into the market closest to the
beverages – snacks. PepsiCo is selling snacks in addition to the beverages and sees a significant
success due to the ability to cross-sell beverages and snacks. Out of the 22 billion dollar brands
that PepsiCo owns, 7 are savory snack brands.

That’s the market The Coca-Cola Company has an opportunity to invest in. According to
Euromonitor International the savory snack market was worth US$46 billion in the U.S. in
2016 and is expected to reach US$50 billion in 2021. That’s US$4 billion growth in just 5
years. The report from Euromonitor International also predicts that global savory snack market
will see even faster growth than the U.S. market.

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Figure: Comparison of savory snack market share by regions.

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Coca-Cola Threats – External Strategic Factors
1. Water usage controversy
Coca-Cola has faced many criticisms over its water management issue. Many social and
environmental groups have claimed that the company has a vast consumption of water
in water-scarce regions. Besides, people have alleged that Coca-Cola is polluting water
and mixing pesticides in water to clear contaminants.

2. Pollution Lawsuit
Coke and three other companies are being sued by a California environmental group for
contributing to plastic pollution. In the lawsuit, Coca-Cola is singled out for misleading the
public about the recyclability of its single-use plastic bottles.

3. Direct and indirect competition

Although direct competition from Pepsi is clear in the market, however, there are many
other companies which are indirectly competing with Coca-Cola. Starbucks, Costa
Coffee, Tropicana, Lipton juices, and Nescafe, are the indirect competitors of Coca-Cola,
which can threaten its market position.

4. Economic Uncertainty
The recent events have negatively affected business operations, supply and distribution
chains, and devastated revenues of many global companies. In 2020, Coca Cola’s revenues
declined drastically as restaurants, theaters, and other venues that contribute about half of
its revenue remained closed due to the global crisis.

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 5. Increasing Health-Consciousness
Consumers are increasingly adopting healthy lifestyles and avoid products with unhealthy
ingredients. The increase in health-consciousness can reduce Coca Cola’s sales and profits
as customers migrate to healthier options offered by competitors.

6. Coca-Cola Recalls Sodas and Juices over Possible Contamination

According to Food Safety News, Coca-Cola announced a recall of its Minute
Maid and Coke products over possible contamination issues. According to reports, the
brands that have been recalled include Maid Berry Punch, Strawberry Lemonade, and Fruit
Punch.
The products were found to contain metal bolts and washers. The company recalled all 59-
oz cartons that were distributed. Moreover, Coca-Cola also recalled 12-oz coke cans over
possible “foreign contaminants.”

Recommendations
Based on the above SWOT analysis of Coca-Cola, we can conclude that Coca-Cola has a definitive
market position in the soda industry. However, it is recommended to bring more innovative
changes.
Some recommendations are explained as follows:
1. Stepping into the food market – Coca-Cola needs to introduce new products in snacks and
food segments.
2. Focusing on health-related matters – It should bring some solution to address the rising
health concerns from social activists.
3. Improving its water management system and dealing with the criticisms from
environmental agencies.
4. Expanding into developing countries with humid temperatures – There are many products
of Coca-Cola like Fuze Tea, Dasani and Hi-C which aren’t distributed in many developing
countries. Coca-Cola needs to increase the distribution of such products.
5. Increasing the distribution of packaged drinking water like Kinley.
6. Working on sustainability and green marketing It can improve its brand image in the
market.

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Summary
In the near future, The Coca Cola Company will experience declining sales and profits because of
its reliance on carbonated sales and the declining demand for sparkling beverages.
The Coca Cola Company is still the largest non-alcoholic beverage company managing the largest
beverage brand portfolio in the world. The company should continue strengthening its beverage
portfolio by introducing healthier beverages to the market. Further investing into the partnerships
with bottling companies and distribution partners would also allow the company to reach more
consumers worldwide.
Nonetheless, all of the strengths now barely help the Coca Cola Company to outweigh its major
weakness – reliance on carbonated drinks to generate the majority of the revenue. The demand for
sparkling sweetened beverages is declining. Consumers are demanding healthier beverages and
the demand for the company’s main brands, such as Coca Cola, Pepsi, Fanta and other sparkling
beverages, is falling significantly.
The Coca Cola Company hasn’t prepared for this weakness when it was just a threat and now has
to remedy the situation fast. Few of the beverage markets offer significant growth opportunities,
therefore, Coca Cola Company has to venture into other product markets.
The Coca Cola Company could use its expertise in producing and selling beverages in alcohol
market. Snacks’ market would also benefit the company as there are some growth opportunities in
it. The company could easily enter any of these markets by acquiring new successfully growing
brands.
There are also some significant threats that may hurt the business in the future. Soda taxes, water
scarcity and growing obesity concerns could significantly impact the company’s revenue and
margins.

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References
1. Interbrand Ranking 2021. Best Global Brands: Coca-Cola. Interbrand
2. Johnston, M. (2020, June 1). 5 Companies Owned by Coca-Cola. Investopedia
3. Law360 (2020, April 6). Fed. Circ. Weighs Undoing Coca-Cola Soda Dispenser IP Win.
Law360
4. Nellis, S. (2020, April 27). Microsoft wins a five-year deal with Coca-Cola to supply
business software. Reuters
5. Win, L. T. (2020, March 31). Bottling it? Plastic pollution from Coca-Cola, PepsiCo fuels
emissions. Reuters
6. Scully, J. (2020, January 31). Coca-Cola’s growth in 2019 driven by trademark Coke
beverages. Food and Beverages
7. McCormick, E. (2020, February 27). Coke and Pepsi sued for creating a plastic pollution
‘nuisance.’ The Guardian
8. Balu, N. (2020, April 21). Coronavirus lockdowns to hurt Coca-Cola’s second-quarter
sales. Reuters
9. Askew, K. (2020, January 15). Shifting Away from Sugar: What’s the outlook in 2020?
Food Navigator
10. https://strategicmanagementinsight.com/swot-analyses/coca-cola-swot-analysis/

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