We know Coca Cola by their signature logo, taste, and classic glass bottles.

These are strengths

they’ve used to their advantage. But what about their weaknesses, opportunities, and threats?
Coca Cola is a mogul, but falling behind serious trends. After conducting a PESTLE analysis on
the soft drink company, here is a look at a comprehensive SWOT analysis of Coca Cola.

Strengths
Coca Cola has an incredible brand identity. It’s a home name by millions around the world. You’ll
come across at least one of their product in over 200 countries.
Because of their known name, they have strong customer loyalty. The particular taste of Coca Cola
makes it easy to identify and hard to find a substitute for their customers.
Coca Cola has a nearly $80 billion company evaluation. Sales saw an increase when they launched
their campaign of putting customer names on their bottles. Prompting consumers to buy the
product, take photos next to the bottles, and post the photos onto social media sites.

Weaknesses
Coca Cola’s major competitor is Pepsi. But unlike Pepsi, which has branched away from the Soda-
only model of revenue, Coca Cola has yet to develop a food or snack. This puts them behind Pepsi
in terms of competition since Pepsi has Lays chips and other foods under their belt.
People have become concerned with obesity and diabetes. Carbonated drinks are a big influencer
of these health complications. Coca Cola, as a major carbonated drink manufacturer, can contribute
to the obesity epidemic. They haven’t addressed or found a healthier solution yet.

Opportunities
Coca Cola can create new products and diversifies their current offerings. They have the brand
identify, customers, manufacturing, and evaluation to back this up. It’s possible to find niches
untouched by Pepsi to develop products, especially in the health food spaces. This way they branch
out from soft drinks.
Coca Cola is in hundreds of countries. They could focus on moving into developing countries with
humid temperatures. These countries will enjoy the treat of Coca Cola in a way developed
countries, already accustomed to the choice, may not.

Threats
Coca Cola was suspected of using pesticides in their water. But water is also becoming limited
because of climate change. Considering Coca Cola needs plenty of water to create their soft drink
empire, should water become scarce, they would be in trouble.
This is why creating new products is important. Pepsi would also be affected if water became
difficult to come by, but they still have other markets to use and develop. Coca Cola does not.
Additionally, the trends and development of cafes can threaten Coca Cola’s livelihood. Smoothies,
healthy tonics, and teas are taking over. People are looking for healthy alternatives to less sugar.
With these shops, especially Starbucks, it could dampen Coca Cola’s sales if they don’t act quickly.

Conclusion
Coca Cola spent time, money, and marketing to become the giant it is in the soda industry. But
they’re missing out on spreading into other food related avenues, allowing Pepsi to occupy these
other markets with ease. They’re well known and can use their iconic brand to spread into
developing countries who will appreciate the products, especially on hot and humid days.
NAME: Shiela Mae Montes Year&Section: BSOA 2-2
Jhonrisk Muleta
Princess Dhaine Sango

SWOT of Coca Cola

Coca cola is a brand which is present in households, shops, hotels, offices, etc. You
name it, and the place would have heard of Coca cola. Coca cola has many products in
its arsenal.

Strengths Weaknesses Opportunities Threats

1. Brand Equity 1. Competition 1.Diversification 1. Raw material
2. Company with Pepsi 2. Developing sourcing
Valuation 2. Product Nation 2. Indirect
3. Vast Global Diversification 3. Packaged Competitors
Presence is Low Drinking Water
4. Largest 3. Absence in 4. Supply chain
Market Share Health improvement
5. Fantastic Beverage 5. Market the
Marketing 4. Water lesser selling
Strategies Management products
6. Customer
Loyal
7. Distribution
Network

Strengths in the SWOT of Coca Cola

1. 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.
 2. 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.
3. 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.
4. Largest market share – There are only 2 Big competitors in the beverage
segment – Pepsiand 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.
5. 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
6. 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.
7. 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

1. 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.
2. 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.
 3. 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.
4. 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.

Opportunities in the SWOT of coca cola

1. Diversification – Diversification in the health and food business will improve

the offerings of Coca cola to their customers. This will also ensure that they get
better revenue from existing customers by cross selling their products.
The supply chain which is distributing their beverages can also distribute these
snacks thereby sharing the load of Supply chain costs.
2. Developing nations – Although developed nations have a high presence of
Coca cola, these countries are slowly moving towards healthy beverages.
However developing countries are still being introduced to the delight of
carbonated drinks and soft drinks. Countries like India which are developing
and have a hot summer, find the consumption of cold drinks almost doubled
during summers. Thus the higher consumption in developing environment’s
can be a good opportunity to capitalize for Coca cola.
3. Packaged drinking water – With hygiene becoming a major factor in the
consumption of water, Packaged drinking water has found its way into peoples
mind. Coca cola has a presence in the packed drinking water segment though
Kinley. Although Kinleys expansion is slow as of now, Kinley has a huge
potential of expansion. Thus Coca cola as a company should focus on the
expansion of Kinley as a brand and take it up to Bisleri ‘s level of trust.
4. Supply chain improvement – Supply chain can be a major cost sink hole with
the transportation costs always rising. Coca cola’s complete business is based
on transportation and distribution. There will always be possible improvements
in this area. Thus Coca cola should keep strict watch on its Supply chain and
keep improving to bring the cost down.
 5. Market the lesser selling products – In the product portfolio of Coca cola,
there are several products which have not found acceptance in the market. Coca
Cola needs to concentrate on the marketing of these products as well. It is
understood that Coca cola has made several expenses to launch these products.
Thus, the marketing and subsequent rise of sale of these products will help
revenue of Coca cola.

Threats in the SWOT of coca cola

1. Raw material sourcing – Water is the only threat to Coca cola. The weakness
of Coca cola was the suspected use of pesticides or vast consumption of water.
However, the threat here is that water scarcity is on the rise. With the climate
changing, and regions of various countries facing scarcity of water, sooner or
later someone might raise fingers on beverage companies. Thus, Water
sourcing is an axe which can fall anytime on the head of Coca cola. If water is
limited or rationed, Coca cola can experience a major downfall in their revenue
and capacity of distribution. The same can affect its arch rival Pepsi as well.
2. Indirect competitors – Coffee chains like Starbucks, Café coffee day, Costa
coffee are on the rise. These chains offer a healthy competition to Coca colas
carbonated drinks. They might not be a big competition for Coke, but they do
give a dent to its beverage market. Similarly, health drinks like Real
and Tropicana as well as energy drinks like Red bull and Gatorade are stealing
away the market share indirectly.