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.

Read on to discover more about the world’s renowned beverage brand through this
Coca Cola SWOT analysis.

$KO CEO James Quincey: “We continue to be encouraged by

our performance year-to-date as we accelerate our
evolution…” pic.twitter.com/QVzigmYah0

— The Coca-Cola Co.

(@CocaColaCo) October 30, 2018

SWOT Analysis of Coca-Cola

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.
3.
 Highest brand equity – Coca-Cola is undoubtedly one of the most renowned brands
with the highest brand equity. It is ranked 5th best global brand in 2019 behind
Microsoft and ahead of Samsung by Interbrand. [1]

4.
5.

Extended global reach – It is sold in more than 200 countries with 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.

6.
7.

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.

8.
9.

Largest Brand Valuation – Coca-Cola is ranked as the 6th most valuable

brand globally on Forbes’ 2019 Ranking. With an estimated brand value of $59.2
billion, Coca-Cola has climbed six places from the previous year. [2]

10.
11.

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.

12.
13.

Unparalleled distribution system – Coca-Cola has the most efficient and most
extensive distribution network in the world. The company has nearly 250 bottling
partners globally.

14.
15. Acquisitions –Coca-Cola has a long list of strategic and profitable acquisitions including Costa
coffee chain, Luze Tea, AdeS, and many more. Through these acquisitions, Coca-Cola expanded its
ready-to-drink beverage portfolio. [3]
 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.
3.

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.

4.
5.

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.

6.
7.

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. [4]

8.
9.

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. [5]

10.
11.

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. [6]

12.
 Coca-Cola Opportunities – External Strategic
Factors
1.

Introduce new products and diversify its segments – Coca-Cola has the
opportunity to introduce new offerings in health and food segments just like Pepsi. It
can contribute to their revenue, and they can branch out from carbonated drinks.

2.
3.

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

4.
5.

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.

6.
7.

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.

8.
9. Expand through Acquisition – Although different sectors offer lucrative opportunities for
growth, quick entry into these markets can be a challenge. Coca-Cola’s growth in 2019 was driven by
some of its recent acquisitions like Costa tea 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.
[7]

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.
3.

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. [8]

4.
5.

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.

6.
7. Economic Uncertainty – The recent events have negatively affected business operations,
supply and distribution chains, and devastated revenues of many global companies. In Q2 of
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. [9]
8.

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. [10]

9.

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