Coca Cola Strengths And Weaknesses
Coca-Cola has many competitors such as PepsiCo, Nestlé, DPSG, Groupe Danone, International, Inc., The Kraft Heinz Company and Unilever. Many of them do not only produce soft beverages but also offer foods, personal care products and cleaning agents to their customers. As PepsiCo is the main Coca-Cola’s competitor, these two enterprises will be compared (The Coca-Cola company, 2017).
Coca-Cola’s crucial competitive strengths include a strong brand and the largest distribution network. Even though PepsiCo also has a large distribution network, it is smaller than Coca-Cola’s (prezi.com, 2017). In addition to this, Coca-Cola brand was rated as №4 on ‘Most valuable brands’ rating in 2016, whereas PepsiCo was rated as №29 (Forbes.com, 2017). However,
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Coca-Cola has established an appealing brand identity through creating associations of its brand with happiness, fun and excitement, generated as a result of drinking Coca-Cola during vacations, birthday parties and concerts. Other common associations include love, belonging and a special family experience created as a result of drinking Coke together with family. Therefore, positive associations elicited by Coca-Cola’s beverages strengthen the value of the brand, which in turn makes it more differentiated from competitors (LaTour, LaTour and …show more content…
In order to avoid health issues, people may reduce their purchases of Coca-Cola’s drinks. Government agencies may also create regulations directed at reducing sales of carbonated beverages. This may be done through increasing taxes on sugared drinks, implementing marketing and packaging restrictions or promoting negative publicity and educational programmes aimed at increasing awareness of health problems caused by consuming Coca-Cola’s beverages (The Coca-Cola company, 2017).
In conclusion, PESTLE analysis, analysis of the competitive environment for Coca-Cola and SWOT analysis demonstrate that the company’s overall performance is effective, that its level of competitiveness is high and that Coca-Cola has successfully used opportunities arising from changes in the technological environment. However, Coca-Cola should develop new strategies in order to protect itself from the negative impact of economic and social changes and to avoid the negative influence of political, legal and environmental factors in the
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